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Question: Patrick has a capital balance of $120,


Patrick has a capital balance of $120,000 in a local partnership, and Caitlin has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Patrick and 40 percent to Caitlin. Camille invests $60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Caitlin’s capital balance after this new investment?
a. $99,600
b. $102,000
c. $112,000
d. $126,000

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