Frodo and Merry share partnership profits and losses in the ratio of 6:4. Frodo's capital account balance is $80,000 and Merry's capital account balance is $50,000. Pippen is admitted to the partnership by investing $90,000 and is to receive a 25% ownership interest. Frodo, Merry, and Pippen's capital balances after Pippen's investment will be

Question

Quizplus · Accepted Answer

The Answer of Frodo and Merry share partnership profits and losses in the ratio of 6:4. Frodo's capital account balance is $80,000 and Merry's capital account balance is $50,000. Pippen is admitted to the partnership by investing $90,000 and is to receive a 25% ownership interest. Frodo, Merry, and Pippen's capital balances after Pippen's investment will be

Frodo and Merry Share Partnership Profits and Losses in the Ratio