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.

Answer rating: 100% (QA)

Clark got 20000 extra hence goodwil... View the full answer