The balance sheet of the Kane, Clark and Lane partnership at the time they agreed to admit Bayer into the partnership showed Kane, Capital $252,000; Clark, Capital $126,000; and Lane, Capital $42,000. The partners each agreed to sell Bayer 20% of their respective interests in net assets for a total payment of $90,000. The payment by Bayer was to be made directly to the individual partners and not to the partnership; and the partners agreed that no goodwill or bonus would be recorded on the partnership books. The capital account balances of Kane, Clark, and Lane under the book value method after the acquisition by Bayer are

Multiple Choice

• Kane, $198,000; Clark, $99,000; Lane, $33,000

• Kane, $201,600; Clark, $100,800; Lane, $33,600

• Kane, $216,000; Clark, $108,000; Lane, $36,000

• Kane, $255,600; Clark, $127,800; Lane, $42,600