On November 30, Capital Balances Are Howe $90,000, Doss $75,000

On November 30, capital balances are Howe $90,000, Doss $75,000 and Newlin $75,000. The income ratios are 20%, 20% and 60%, respectively. Howe decides to retire from the partnership. In order for Doss and Newlin to have equal capital interests after the retirement of Howe, how much partnership cash would have to be paid to Howe for her partnership interest?

A) $0
B) $80,000
C) $90,000
D) Any amount paid to Howe will cause Doss and Newlin to still have equal capital balances.