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A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (40%) $ 100,000 Donovan (30%) 200,000 Watkins (30%) 300,000

A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:

Burks (40%) $ 100,000

Donovan (30%) 200,000

Watkins (30%) 300,000

Ranzilla agrees to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's payment. What is Donovans capital balance after the transaction?

  • $175,000

  • $200,000

  • $195,000

  • $150,000

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