The capital account balances for Donald & Hanes LLP on January 1, 2021, were as follows: Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.What is the balance of May's capital account after the new partnership is created?

Question

The capital account balances for Donald & Hanes LLP on January 1, 2021, were as follows:  Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.What is the balance of May's capital account after the new partnership is created?

Quizplus · Accepted Answer

The Answer of The capital account balances for Donald & Hanes LLP on January 1, 2021, were as follows:  Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and no goodwill was recognized.What is the balance of May's capital account after the new partnership is created?

The Capital Account Balances for Donald & Hanes LLP on January