Travis, Jennifer, and Henry have partnership capital account balances of $150,000, $300,000 and $70,000, respectively. The profit sharing ratio is Travis, 50%; Jennifer, 40%; and Henry, 10%. Travis wishes to withdraw from the partnership and it is agreed that partnership assets of $120,000 will be used to pay Travis for her partnership interest. The balances of Jennifer's and Henry's Capital accounts after Travis's withdrawal would be

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Jennifer and Henry's capital accounts will be adjusted based on the remaining balance after Travis's withdrawal. Travis's capital account is $150,000, and she is paid $120,000 to withdraw, leaving $30,000 to be absorbed by Jennifer and Henry according to their profit-sharing ratio (40% and 10%, respectively). This means Jennifer absorbs $24,000 (80% of $30,000) and Henry absorbs $6,000 (20% of $30,000), resulting in new balances of $324,000 for Jennifer ($300,000 + $24,000) and $76,000 for Henry ($70,000 + $6,000).

Travis, Jennifer, and Henry Have Partnership Capital Account Balances of $150,000