Kara Johnson and Tyler Jones are partners, and each has a capital balance of $100,000. To gain admission to the partnership, Raiden Nash pays $60,000 directly to Johnson for one-half of her equity. After the admission of Nash, the total partners' equity in the records of the partnership will be
A)$200,000.
B)$250,000.
C)$260,000.
D)$300,000.

Question

Quizplus · Accepted Answer

The total partners' equity remains $200,000 because Raiden Nash's payment is made directly to Johnson, not to the partnership.

Kara Johnson and Tyler Jones Are Partners, and Each Has