Judy and Sue have partnership capital account balances of $600,000 and $450,000, respectively and share profits and losses equally. Sara is admitted to the partnership by investing $250,000 for a one-fourth ownership interest. The balance of Sue's Capital account after Sara is admitted is
A) $412,500.
B) $450,000.
C) $487,500.
D) $325,000.
Correct Answer:
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