5.

At year-end, the Circle City partnership has the following capital balances:

Manning, Capital	$	160,000
Gonzalez, Capital		140,000
Clark, Capital		110,000
Freeney, Capital		100,000

Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $126,000 from the business based on the original contractual agreement.

Using the goodwill method, what is Mannings capital balance after Clark withdraws?

$172,000.

$176,000.

$184,000.

$164,800.

6.

William (40% of gains and losses)	$	280,000
Jennings (40%)		230,000
Bryan (20%)		210,000

Darrow invests $325,000 in cash for a 30 percent ownership interest. The money goes to the business. No goodwill or other revaluation is to be recorded. After the transaction, what is Jenningss capital balance?

$234,600.

$233,450.

$230,000.

$327,500.