Question

A partnership has the following capital balances:

Comprix (40% of gains and losses)	$	100,000
Heflin (30%)		200,000
Kaplan (30%)		300,000

Mahar is going to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Heflin’s capital balance after the transaction?

Answer 1