WJB Partnership has the following balances and admits Darrow as a partner.

William (40% income share) Capital $ 220,000

Jennings (40% income share) Capital $160,000

Bryan (20% income share) Capital$110,00

Darrow pays the 3 partners a total of $ 270,000 in cash for a 30 percent ownership interest. The money goes to the original partners. Goodwill is to be recorded. How much goodwill should be recognized, and what is Darrows beginning capital balance? Hint: If $270,000 = 30% then we can assume that the market value for 100% of the partnership is $900,000.

$ 410,000 Goodwill and $ 270,000 Darrow Capital.

$ 270,000 Goodwill and $ 270,000 Darrow Capital.

$ 189,000 Goodwill and $ 189,000 Darrow Capital.

$ 410,000 Goodwill and $ 189,000 Darrow Capital.