Asked by deegii boogii on Jul 20, 2024
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Elkins and Landry are partners who share income and losses in the ratio of 3:2 respectively. On August 31 their capital balances were: Elkins $140000 and Landry $120000. On that date they agree to admit Neumark as a partner with a one-third capital interest. If Neumark invests $160000 in the partnership what is Landry's capital balance after Neumark's admittance?
A) $140000
B) $128000
C) $126000
D) $120000
Capital Balances
The amount of money that the owners of a business have invested in it, typically represented in the equity section of the balance sheet.
Income and Losses
Represents the financial results of a company's operations, with income meaning the revenues exceeding expenses and losses referring to expenses exceeding revenues.
Capital Interest
The share of ownership in a company or its assets, particularly reflecting the amount invested by owners or shareholders.
- Assess the stakeholder capital balances in a partnership both pre and post the admission of an additional partner.
Verified Answer
Learning Objectives
- Assess the stakeholder capital balances in a partnership both pre and post the admission of an additional partner.
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