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11 December, 08:57

Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership's capital balances are Caitlin, $131,000; Chris, $91,000; and Molly, $111,000. Paul is admitted to the partnership on July 1 with a 15% equity and invests $171,000. The balance in Caitlin's capital account immediately after Paul's admission is: Multiple Choice $171,000 $102,380 $159,620 $139,620 $129,160

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  1. 11 December, 12:22
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    Pauls' share in partnership = (131000+91000+111000+171000) * 0.15% = $75600

    Balance in Caitlin's capital account immediately after Paul's admission = 131000 - (75600-71000) * 30% = $129160
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