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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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