At year-end, the Cisco partnership has the following capital balances: LO3 Montana, Capital Rice, Capital . . .

Craig, Capital . .

Taylor, Capital . .

Profits and losses are split on a 3:3:2:2 basis, respectively. Craig decides to leave the partnership and is paid $90,000 from the business based on the original contractual agreement. If the goodwill method is to be applied, what is the balance of Montana’s capital account after Craig withdraws?

a. $133,000.

b. $137,500.

c. $140,000.

d. $145,000.

Problems 13 and 14 are independent problems based on the following capital account balances:

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