A partnership has the following capital balances:
Albert (50% of gains and losses) . . . . . . . . . . . . . . $ 80,000
Barrymore (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . 60,000
Candroth (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . 140,000
Danville is going to invest $70,000 into the business to acquire a 30 percent ownership interest.
Goodwill is to be recorded. What will be Danville’s beginning capital balance?
a. $70,000.
b. $90,000.
c. $105,000.
d. $120,000.