If instead the partnership uses the bonus method, what is the balance of Manning’s capital account after Clark withdraws?

  a. $100,000
  b. $126,250
  c. $130,000
  d. $133,750

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.