Problem - At year end, Dartford LLP has the following capital balances:
Madeleine, capital $140,000
Rick, capital 100,000
Carmen, capital 80,000
Tom, capital 70,000
The profit sharing ratios are Madeleine 30%, Rick 30%, Carmen 20%, Tom 20%. Carmen decides to leave the partnership and is paid $90,000 from the business based on the original contractual agreement. If the goodwill method is to be applied, what is the balance of Madeleine's capital account after Carmen withdraws.
a. $140,000
b. $115,000
c. $155,000
d. $90,000