Detailed Answer
(b) The right of contribution arises when one cosurety,
in performance of the principal debtor’s obligation, pays more
than his/her proportionate share of the total liability. The right
of contribution allows the performing cosurety to receive reimbursement
from the other cosureties for their pro rata shares of
the liability. The pro rata shares of the cosureties are determined
as follows:
Surety’s pro rata share Remaining liability Surety’s liability
Queen (210,000/420,000) × 210,000 = 105,000
Ash ( 84,000/420,000) × 210,000 = 42,000
Kane (126,000/420,000) × 210,000 = 63,000
Thus, Queen is entitled to receive $42,000 from Ash and $63,000
from Kane.