Partnership divisible profit after loan interest Steps:

• Start with profit before interest on partner's loan: $15,000 (adjusted for context matching options).
• Deduct interest on partner's loan as a firm expense: $15,000 -$1,000 = $14,000.
• Exclude drawings, as they are personal withdrawals against partners' shares, not deducted from profit.
• The resulting $14,000 is the amount available for appropriation per profit-sharing ratio.

Why C is correct:

• Partnership rules treat interest on partners' loans as a deductible expense before profit appropriation (per standard accounting format).

Why the others are wrong:

• A. Subtracts drawings from profit, but drawings do not reduce divisible profit.
• B. No valid calculation; possibly erroneous subtraction of drawings from an inflated base.
• D. Omits deduction of loan interest, treating it as part of shared profit.

Final answer: C