REFERENCE: Ref.14_05 Donald,Anne,and Todd Have the Following Capital Balances;$40,000,$50,000 and $30,000 Respectively.The

REFERENCE: Ref.14_05
Donald,Anne,and Todd have the following capital balances;$40,000,$50,000 and $30,000 respectively.The partners share profits and losses 20%,40%,and 40% respectively.
-Anne retires and is paid $80,000 based on the terms of the original partnership agreement.If the bonus method is used,what is the capital of the remaining partners?

A) Donald,$40,000;Todd,$30,000
B) Donald,$30,000;Todd,$10,000
C) Donald,$50,000;Todd,$50,000
D) Donald,$80,000;Todd,$70,000

Correct Answer:

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