Peter, Roberts, and Dana have the following capital balances; $80,000, $100,000 and $60,000, respectively.The partners share profits and losses 20%, 40%, and 40% respectively.Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Peter?
A) $20,000.
B) $60,000.
C) $110,000.
D) $120,000.
E) $230,000.

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The Answer of Peter, Roberts, and Dana have the following capital balances; $80,000, $100,000 and $60,000, respectively.The partners share profits and losses 20%, 40%, and 40% respectively.Roberts retires and is paid $160,000 based on an independent appraisal of the business.If the goodwill method is used, what is the capital balance of Peter?
A) $20,000.
B) $60,000.
C) $110,000.
D) $120,000.
E) $230,000.

Peter, Roberts, and Dana Have the Following Capital Balances; $80,000