Douglas pays Selena $45,000 for her 30% interest in a partnership with net assets of $125,000. Following this transaction, Douglas's capital account should have a credit balance of

Name: Douglas pays Selena $45,000 for her 30% interest in a partnership with net assets of $125,000. Following this transaction, Douglas's capital account should have a credit balance of
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Question

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Douglas's capital account should reflect 30% of the partnership's net assets, which is 30% of $125,000, equaling $37,500.

Douglas Pays Selena $45,000 for Her 30% Interest in a Partnership