A local partnership has two partners, Jim and Pam. Jim has a capital balance of $150,000 and Pam has a capital balance of $125,000. These two partners share profits and losses 60 percent (Jim) and 40 percent (Pam). Cece invests $75,000 in cash in the partnership for a 25 percent ownership. The bonus method will be used. What is Jim's capital balance after this new investment?
A) $87,500.
B) $157,500.
C) $142,500.
D) $120,000.
E) $130,000.

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The Answer of A local partnership has two partners, Jim and Pam. Jim has a capital balance of $150,000 and Pam has a capital balance of $125,000. These two partners share profits and losses 60 percent (Jim) and 40 percent (Pam). Cece invests $75,000 in cash in the partnership for a 25 percent ownership. The bonus method will be used. What is Jim's capital balance after this new investment?
A) $87,500.
B) $157,500.
C) $142,500.
D) $120,000.
E) $130,000.

A Local Partnership Has Two Partners, Jim and Pam