Travis, Jennifer, and Henry Have Partnership Capital Account Balances of $150,000

question 147

Multiple Choice

Travis, Jennifer, and Henry have partnership capital account balances of $150,000, $300,000 and $70,000, respectively. The profit sharing ratio is Travis, 50%; Jennifer, 40%; and Henry, 10%. Travis wishes to withdraw from the partnership and it is agreed that partnership assets of $120,000 will be used to pay Travis for her partnership interest. The balances of Jennifer's and Henry's Capital accounts after Travis's withdrawal would be

• A) Jennifer, $300,000; Henry, $70,000.
• B) Jennifer, $324,000; Henry, $76,000.
• C) Jennifer, $276,000; Henry, $64,000.
• D) Jennifer, $285,000; Henry, $55,000.

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