Sam McGuire and Marcos Valle are partners,and each has a capital balance of $50,000.To gain admission to the partnership,Scott Jordan pays $35,000 directly to Valle for one-half of his equity.After the admission of Jordan,the total partners' equity in the records of the partnership will be
A) $50,000.
B) $67,500.
C) $85,000.
D) $100,000.

Question

Quizplus · Accepted Answer

The total partners' equity remains unchanged at $100,000 because Scott Jordan's payment is made directly to Valle and does not affect the partnership's total equity.

Sam McGuire and Marcos Valle Are Partners,and Each Has a Capital