Quincy has decided to retire from the partnership of Quincy, Robert, and Sam. The partnership will pay Quincy $400,000. Total partnership capital should be revalued based on the excess payment to Quincy.

(Assume the book values of the assets listed below equals fair values.) A summary balance sheet for the Quincy, Robert, and Sam partnership appears below. Quincy, Robert, and Sam share profits and losses in a ratio of 1:1:3, respectively.

Assets Cash $ 150,000; Marketable securities 76,000; Inventory 164,000; Land 300,000;

Building-net 510,000; Total assets $1,200,000

Equities Quincy, capital 320,000; Robert, capital 280,000; Sam, capital 600,000;

Total equities $1,200,000

1.What goodwill will be recorded? A) $ 80,000 B) $240,000 C) $320,000 D) $400,000