Donald, Anne, and Todd have the following capital balances; $40,000, $50,000 and $30,000 respectively.The partners share profits and losses 20%, 40%, and 40% respectively.Anne retires and is paid $80,000 based on the terms of the original partnership agreement.If the bonus method is used, what is the capital of the remaining partners?
A) Donald, $40,000; Todd, $30,000.
B) Donald, $30,000; Todd, $10,000.
C) Donald, $50,000; Todd, $50,000.
D) Donald, $24,000; Todd, $18,000.
E) Donald, $70,000; Todd, $40,000.
Correct Answer:
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