Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

Exercise 26

Darrow invests $270,000 in cash for a 30 percent ownership interest.The money goes to the original partners.Goodwill is to be recorded.How much goodwill should be recognized, and what is Darrow's beginning capital balance
a.$410,000 and $270,000.
b.$140,000 and $270,000.
c.$140,000 and $189,000.
d.$410,000 and $189,000.