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Benson and Orton Are Partners Who Share Income in the Ratio

Question 131

Multiple Choice

Benson and Orton are partners who share income in the ratio of 1:3 and have capital balances of $70,000 and $30,000, respectively. Ramsey is admitted to the partnership and is given a 40% interest by investing $20,000. What is Orton's capital balance after admitting Ramsey?


A) $20,000
B) $9,000
C) $70,000
D) $63,000

Correct Answer:

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