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At year-end, the Circle City partnership has the following capital balances: Manning, Capital $ 170,000 Gonzalez,...

At year-end, the Circle City partnership has the following capital balances:

Manning, Capital $ 170,000
Gonzalez, Capital 150,000
Clark, Capital 120,000
Freeney, Capital 110,000

Profits and losses are split on a 3:3:2:2 basis, respectively. Clark decides to leave the partnership and is paid $138,000 from the business based on the original contractual agreement.

The payment made to Clark beyond his capital account was for Clark's share of previously unrecognized goodwill. After recognizing partnership goodwill, what is Manning’s capital balance after Clark withdraws?

Multiple Choice

  • $197,000

  • $183,500

  • $188,000

  • $175,400

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