Answer:
$118,250
Explanation:
Provided Capital Balances
Roses $299,000
Ellis $258,000
Gise $258,000
Total Capital = $815,000
Cash paid to Roses on Retirement = $342,000
Balance of capital = $815,000 - $342,000 = $473,000
Ratio of sharing between Ellis and Gise will be
Rose's share = 20% will be divided in 20:60 i.e. 1:3
Ellis = 20
1/4 = 5
Therefore, Ellis Share = 20 + 5 = 25%
Gise = 60 + 20 - 5 = 75%
Balance of capital = $473,000
Share of Ellis = 25% of $473,000 = $118,250