Question

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

Answer 1

Answer:

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