FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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At year-end, the Circle City partnership has the following capital balances:

Manning, Capital . . . . . . . . . $130,000
Gonzalez, Capital . . . . . . .  . 110,000
Clark, Capital . . . . . . . . . . . . 80,000
Freeney, Capital . . . . . . .. . . 70,000

Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $90,000 from the business based on the original contractual agreement.
The payment made to Clark beyond his capital account was for Clark’s share of previously unrecognized goodwill. After recognizing partnership goodwill, what is Manning’s capital balance after
Clark withdraws? Choose the correct.  a. $133,000                                              b. $137,500                                              c. $140,000                                              d. $145,000

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