A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:

Burks (40% )	$	180,000
Donovan (30%)		280,000
Watkins (30%)		380,000

Ranzilla agrees to pay a total of $280,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's payment. What is Donovan’s capital balance after the transaction?

• $280,000

• $210,000

• $255,000

• $273,000

Answer rating: 100% (QA)

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