Partnership residual profit sharing after interest adjustments Steps:

• Add interest on drawings to profit: $80,000 +$500 + $1,000 =$81,500 (drawings increase distributable profit).
• Subtract interest on capital: $81,500 -$3,000 - $2,500 =$76,000 (capital interest is an appropriation).
• Residual profit available for ratio sharing: $76,000.
• Divide in 3:1 ratio: Dele $57,000 (3/4), Iyabo$19,000 (1/4).

Why A is correct:

• Matches exact 3:1 division of $76,000 residual after standard appropriation adjustments per partnership accounting rules.

Why the others are wrong:

• B. Uses incorrect residual ($86,500), inflating both shares.
• C. Misapplies subtraction, yielding $84,000 residual.
• D. Distorts Iyabo's share from proper 1/4 calculation.

Final answer: A