James Dixon,a Partner in an Accounting Firm,decided to Withdraw from the Partnership.Dixon's

Multiple Choice

James Dixon,a partner in an accounting firm,decided to withdraw from the partnership.Dixon's share of the partnership profits and losses was 20%.Upon withdrawing from the partnership he was paid $74,000 in final settlement for his interest.The total of the partners' capital accounts before recognition of partnership goodwill prior to Dixon's withdrawal was $210,000.After his withdrawal the remaining partners' capital accounts,excluding their share of goodwill,totaled $160,000.The total agreed upon goodwill of the firm was

A) $250,000
B) $140,000
C) $160,000
D) $120,000