Benson and Orton are partners who share income in the ratio of 2:3 and have capital balances of $60,000 and $40,000, respectively. Ramsey is admitted to the partnership and is given a 10% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?

A) $44,800
B) $35,200
C) $20,000
D) $16,000

To admit Ramsey with a 10% interest for his $20,000 investment, the total capital of the new partnership must be $200,000 ($20,000 / 10%). Before Ramsey's admission, Benson and Orton had a total capital of $100,000 ($60,000 + $40,000). The new total capital is $200,000, so the implied increase in value is $100,000, which needs to be shared between Benson and Orton in their income ratio of 2:3. Orton's share of the increase is 3/5 of $100,000, which is $60,000. Adding this to Orton's original capital of $40,000 gives a new capital balance of $100,000. However, since Ramsey's capital is considered to be 10% of the total capital, implying the total capital is $200,000 after his admission, and given the distribution of the increase, there seems to be a misunderstanding in the calculation. Correctly, to find Orton's new capital balance, considering the total capital is now $200,000 and Orton retains his proportional share minus the 10% given to Ramsey, we should calculate based on the original information and the direct impact of Ramsey's admission. Since Ramsey's $20,000 is for a 10% interest, the total capital is indeed $200,000. Orton's share before Ramsey's admission was 3/5 of the partnership (since they shared income in a 2:3 ratio), but with Ramsey taking a 10% share, the dynamics change slightly. However, without adjusting Orton's and Benson's shares directly for Ramsey's admission beyond the initial calculation, we directly calculate Orton's new balance by recognizing the total capital increase and his proportional share. The error in the explanation above is in recalculating Orton's share post-Ramsey without clear steps for the adjustment due to Ramsey's admission. The correct approach involves directly calculating the impact of Ramsey's investment on the total capital and how it affects Orton's share, but the initial calculation provided does not align with the choices given, indicating a mistake in the process. Given the choices and the scenario, without a clear method to adjust Orton's capital directly based on the information provided, the correct answer should reflect an understanding of the partnership's new total capital and the distribution of shares, but the calculation mistake led to an incorrect explanation path.