Problem:
Algood and Gaw began a partnership on January 2 of the current year. Algood invested cash of $150,000 as well as inventory costing $30,000, but with a current appraised value of $50,000. Gaw contributed land with a $60,000 book value and a $90,000 fair market value. The partnership also accepted responsibility for a $70,000 note payable owed in connection with the land. The partners agreed to begin operations with equal capital balances.
Required:
Question: Assuming that the bonus method was used by this partnership, what was Algood's initial capital balance?
Note: Be sure to show how you arrived at your answer.