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. 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 partnership capital will Robert have after Quincy retires?

a. $200,000

b. $280,000

c. $360,000

d. $440,000

2. What amount of goodwill will be recorded?

a. $80,000

b. $240,000

c. $320,000

d. $400,000