William desires to purchase a one fourth capital and profit and loss interest in the partnership of Eli, George, and Dick. The three partners agree to sell William one fourth of their respective capital and profit and loss interests in exchange for a total payment of $40,000. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to William are as follows:
|
Eli capital (60%) |
$ 80,000 |
|
George capital (30%) |
40,000 |
|
Dick capital (10%) |
20,000 |
|
$140,000 |
All other assets and liabilities are fairly valued, and implied goodwill is to be recorded prior to the acquisition by William. Immediately after William’s acquisition, what should be the capital balances of Eli, George, and Dick, respectively?
a $60,000, $30,000, $15,000
b $69,000, $34,500, $16,500
c $77,000, $38,500, $19,500
d $92,000, $46,000, $22,000