Donkey desires to purchase a one-fourth capital and profit and loss interest in the partnership of Shrek, Fiona, and Muffin. The three partners agree to sell Donkey one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $125,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Donkey follow: All other assets and liabilities are fairly valued above. Immediately after Donkey's acquisition, what should be the capital balances of Shrek, Fiona, and Muffin, respectively?

Question

Donkey desires to purchase a one-fourth capital and profit and loss interest in the partnership of Shrek, Fiona, and Muffin. The three partners agree to sell Donkey one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $125,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Donkey follow:  All other assets and liabilities are fairly valued above. Immediately after Donkey's acquisition, what should be the capital balances of Shrek, Fiona, and Muffin, respectively?

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The Answer of Donkey desires to purchase a one-fourth capital and profit and loss interest in the partnership of Shrek, Fiona, and Muffin. The three partners agree to sell Donkey one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $125,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Donkey follow:  All other assets and liabilities are fairly valued above. Immediately after Donkey's acquisition, what should be the capital balances of Shrek, Fiona, and Muffin, respectively?

Donkey Desires to Purchase a One-Fourth Capital and Profit and Loss