|
William (40% of gains and losses) |
$220,000 |
|
Jennings (40%) |
160,000 |
|
Bryan (20%) |
110,000 |
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.