Question
At year-end, the Circle City partnership has the following capital balances: Manning, Capital $ 170,000 Gonzalez, Capital 150,000 Clark, Capital 120,000 Freeney, Capital 110,000 Profits
At year-end, the Circle City partnership has the following capital balances:
| Manning, Capital | $ | 170,000 |
| Gonzalez, Capital | 150,000 | |
| Clark, Capital | 120,000 | |
| Freeney, Capital | 110,000 | |
Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $138,000 from the business based on the original contractual agreement.
The payment made to Clark beyond his capital account was for Clark's share of previously unrecognized goodwill. After recognizing partnership goodwill, what is Mannings capital balance after Clark withdraws?
Multiple Choice
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$188,000
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$183,500
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$197,000
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$175,400
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Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
7th edition
978-0077632427, 77632427, 78025656, 978-0078025655
