In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following question is independent of the others.
Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. What is the Ron's capital balance after Tiffany withdraws from the partnership?

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Tiffany's withdrawal is $60,000, which is $10,000 more than her capital balance of $50,000. This excess is shared by Ron and Stella in their profit-sharing ratio of 3:2. Ron's share of the excess is $6,000 (3/5 of $10,000), reducing his capital from $80,000 to $74,000.

In the RST Partnership, Ron's Capital Is $80,000, Stella's Is