A partnership has the following capital balances:
|
Elgin (40% of gains and losses) |
$100,000 |
|
Jethro (30%) |
200,000 |
|
Foy (30%) |
300,000 |
Oscar is going to pay a total of $200,000 to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Jethro’s capital balance after the transaction?
a. $150,000.
b. $175,000.
c. $195,000.
d. $200,000.