Sung and Ping have partnership capital account balances of $180,000 and $140,000 respectively and share profits and losses equally. Luing is admitted to the partnership by investing $80,000 for a one-fourth ownership interest. The balance of Ping's capital account after Luing is admitted is

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When Luing is admitted, the total capital becomes $400,000 ($180,000 + $140,000 + $80,000). Luing's one-fourth interest means he should have $100,000 in capital ($400,000 * 1/4). The excess $20,000 ($100,000 - $80,000) is a bonus to the existing partners, shared equally. Thus, Ping's new capital is $140,000 + $10,000 = $150,000.

Sung and Ping Have Partnership Capital Account Balances of $180,000