Homework answers / question archive / A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:  Burks (50% ) $140,000 Donovan (25%) 240,000 Watkins (25%) 340,000  Ranzilla agrees to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each

A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:  Burks (50% ) $140,000 Donovan (25%) 240,000 Watkins (25%) 340,000  Ranzilla agrees to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each

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A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: 
Burks (50% ) $140,000 Donovan (25%) 240,000 Watkins (25%) 340,000 
Ranzilla agrees to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's payment. What is Donovan's capital balance after the transaction? 
Multiple Choice 0 $225,000 0 $180,000 0 $240,000 0 $215,000