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

Profits and losses are split on a $3$:$3$:$2$:$2$ basis, respectively. Elizabeth decides to leave the partnership and is paid $$206,000$ from the

business based on the original contractual agreement.

Required:

The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After

recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws.