Reverse appropriation to find total profit Steps:

• L's residual share is $24,000 at 2:5 ratio, so total residual profit = 24,000 × (5/2) =$60,000.
• Total salaries = $22,000 (L) +$17,000 (M) = $39,000.
• Total interest on capital at 8% = $5,500 (from given capitals L and M).
• Profit before appropriation = total residual + total salaries + total interest on capital = 60,000 + 39,000 + 5,500 = $104,500.

Why C is correct:

• Profit before appropriation equals sum of all items credited in the appropriation account: interest on capital + salaries + residual profit (per partnership accounting standards).

Why the others are wrong:

• A understates by omitting salaries and interest on capital.
• B approximates residual + salaries but excludes interest on capital.
• D overstates by incorrectly adding interest on drawings or drawings amounts.

Final answer: C