6. Dix, a partner in an accounting firm, decided to withdraw from the partnership. Dix’s share of the partnership profits and losses was 20 percent. Upon withdrawing from the partnership, he was paid $74,000 in final settlement for his partnership interest. The total of the partners’ capital accounts before recognition of partnership goodwill prior to Dix’s withdrawal was $210,000. After his withdrawal, the remaining partners’ capital accounts, excluding their share of goodwill, totaled $160,000. The total agreed-upon goodwill of the firm was:

a $120,000 b $140,000 c $160,000 d $250,000 558 CHAPTER 16