Valerie Wone and Samantha Wall are partners and together have equity of $150,000 in the partnership.Sarah wishes to become a partner with ¼ interest in the firm.If her investment reflects the cash paid,how much will she contribute to the partnership?

Question

Quizplus · Accepted Answer

The total equity of the partnership is $150,000.

Since Sarah wishes to have a 1/4 interest, she will need to contribute 1/4 of the equity.

1/4 of $150,000 is $37,500.

Therefore, Sarah will contribute $37,500 to the partnership.

Valerie Wone and Samantha Wall Are Partners and Together Have