1. Barb, Chris, and Debbie have partnership capital account balances of:

Barb, Capital	$300,000
Chris, Capital	600,000
Debbie, Capital	140,000

The income and loss sharing ratio is 5:4:1. Barb decides to withdraw from the partnership. It is agreed that partnership assets of $260,000 will be used to pay Barb for her partnership interest. The balances of Chris and Debbie's capital accounts after Barb withdraws would be:

1. Chris, $600,000; Debbie, $140,000
2. Chris, $632,000; Debbie, $148,000
3. Chris, $568,000; Debbie, $132,000
4. Chris, $580,000; Debbie, $120,000