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 Donald's capital account after the new partnership is created?
A) $84,000.
B) $100,000.
C) $140,000.
D) $176,000.
E) $200,000.
Correct Answer:
Verified
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