Use the following information to answer the question below Ata. Bubu and Chikum were in partnership sharing profits and losses in proportion to their capita...

To calculate the profit available for sharing among the partners, we need to first calculate the total capital of the partnership: Total capital = Ata's capital + Bubu's capital + Chikum's capital Total capital = 40,000 + 30,000 + 20,000 Total capital = N90,000 Next, we need to calculate the interest on capital for each partner: Ata's interest on capital = 5% of 40,000 = 2,000 Bubu's interest on capital = 5% of 30,000 = 1,500 Chikum's interest on capital = 5% of 20,000 = 1,000 Now, we can calculate the total interest on capital: Total interest on capital = Ata's interest on capital + Bubu's interest on capital + Chikum's interest on capital Total interest on capital = 2,000 + 1,500 + 1,000 Total interest on capital = N4,500 The net profit for the year was N40,500. We need to subtract the interest on capital from the net profit to get the profit available for sharing: Profit available for sharing = Net profit - Total interest on capital Profit available for sharing = 40,500 - 4,500 Profit available for sharing = N36,000 Therefore, the profit available for sharing among the partners is N36,000. Option C matches this answer.