R. Schoen purchases a 25% interest for $60000 when the Hise Poole Lagos partnership has total capital of $540000. Prior to the admission of Schoen each partner has a capital balance of $180000. Each partner relinquishes an equal amount of his capital balance to Schoen. The amount to be relinquished by Lagos is

Question

Quizplus · Accepted Answer

Lagos relinquishes $30,000, which is one-third of the $90,000 total relinquished by the existing partners to accommodate Schoen's $60,000 investment for a 25% interest, with the remaining $30,000 representing Schoen's share of the partnership's existing value.

R Schoen Purchases a 25% Interest for $60000 When the Hise