The following balances as at October 31, 2016 for the Partnership of Wilma, Xelyn, and Yska were as follows:
Xelyn, loan 24,000
Non-cash assets 640,000
Wilma, loan 36,000
Wilma, capital 168,000
Xelyn, capital 156,000
Yska, capital 360,000
Wilma has decided to retire from the partnership on October 31. Partners agreed to adjust the non-cash assets to their fair market value of $784,000. The estimated profit to October 31 is $160,000. Wilma will be paid $276,800 for her partnership interest inclusive of her loan which is to be paid in full. Their profit and loss ratio is 3:4:3 to Wilma, Xelyn and Yska, respectively.
Choice the correct answer with solutions.
1. will be the balance of Xelyn capital account after the retirement of Wilma.
a. $ 258,888
b. $ 264,114