_____ Data for the Partnership of X and Y Follow

Multiple Choice

_____ Data for the partnership of X and Y follow:
Z is to be admitted into the partnership and is to have a one-third interest in capital and profits with a cash contribution of $30,000. The balances in the capital accounts of X, Y, and Z under the recording the goodwill method are:

A) $44,000, $36,000, and $40,000, respectively.
B) $56,000, $44,000, and $20,000, respectively.
C) $50,000, $40,000, and $30,000, respectively.
D) $50,000, $40,000, and $40,000, respectively.
E) $50,000, $40,000, and $45,000, respectively.