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Question - Jor-El Partnership was formed on January 2, 2020. Under the partnership agreement, each partner has an equal initial capital balance accounted for under the goodwill method. Partnership net income and loss is allocated 60% to Jor and 40% to El. To form the partnership, Jor contributed cash of $60,000 while El contributed $20,000 in cash. Compute El's initial capital balance in the partnership?
A. $20,000.
B. $25,000.
C. $60,000.
D. $40,000.
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