Darrow invests 270 000 in cash for a 30 percent ownership
Darrow invests $270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrow’s beginning capital balance?
a. $410,000 and $270,000.
b. $140,000 and $270,000.
c. $140,000 and $189,000.
d. $410,000 and $189,000.

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

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