On November 30 capital balances are Forsytha $720000 Lagassi $600000 and Kelly $600000. The income ratios are 20% 20% and 60% respectively. Forsytha decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Forsyth how much partnership cash would have to be paid to Forsytha for her partnership interest?
A) $0.
B) $640000
C) $720000
D) Any amount paid to Forsyth will cause Lagassi and Kelly to still have equal capital balances.
Correct Answer:
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