# Question

Darrow invests \$250,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jennings’s capital balance?
a. \$160,000.
b. \$168,000.
c. \$170,200.
d. \$171,200.

Capital account balances:
William (40% of gains and losses) . . . . . . . . . . . . . \$220,000
Jennings (40%) . . . . . . . . . . . . . . . . . . . . . . . . . . ... 160,000
Bryan (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,000

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