At year-end, the Circle City partnership has the following capital balances:
|
Manning, Capital |
$ |
320,000 |
|
Gonzalez, Capital |
300,000 |
|
|
Clark, Capital |
270,000 |
|
|
Freeney, Capital |
260,000 |
Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $290,000 from the business based on the original contractual agreement.
Using the goodwill method, what is Manning’s capital balance after Clark withdraws?
a) $340,000.
b) $326,000.
c) $335,000.
d) $350,000.
