Norbert’s initial capital balance in Moon-Norbert is

a. $20,000.

b. $25,000.

c. $40,000.

d. $60,000.

The Moon-Norbert Partnership was formed on January 2, 20X5. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income or loss is allocated 60 percent to Moon and 40 percent to Norbert. To form the partnership, Moon originally contributed assets costing $30,000 with a fair value of $60,000 on January 2, 20X5, and Norbert contributed $20,000 in cash. Partners’ drawings during 20X5 totaled $3,000 by Moon and $9,000 by Norbert. Moon-Norbert’s net income for 20X5 was $25,000.