Kevin has a 30% participation in the partnership profits and losses. Kevin's capital account has a net decrease of $120,000 for the current year. During the year, Kevin withdrew $260,000 (charged to his capital account) and contributed property valued at $50,000 to the partnership. What was the net income of the partnership for the current year.

Is my answer right?

{[$260,000 - ($120,000 + $50,000)] / 30%} = $300,000

I think the correct answer is:

{[$260,000 - ($120,000 - $50,000)] / 30%} = $270,000

$50,000 is to be deducted not added

Net Increase (Decrease) = Investments + Net income share (Deduct if net loss) - Withdrawals

Net income share / percentage of share in the net icome = net income of the partnership