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

Exercise 44

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