Eaton and Fields sell 1/4 of their partnership interest to O'Reilly receiving $25,000 each. At the time of admission, Eaton and Fields each had a $45,000 capital balance. The admission of O'Reilly will cause the net partnership assets to
A) increase by $50,000.
B) remain at $90,000.
C) decrease by $50,000.
D) remain at $140,000.

Question

Quizplus · Accepted Answer

The Answer of Eaton and Fields sell 1/4 of their partnership interest to O'Reilly receiving $25,000 each. At the time of admission, Eaton and Fields each had a $45,000 capital balance. The admission of O'Reilly will cause the net partnership assets to
A) increase by $50,000.
B) remain at $90,000.
C) decrease by $50,000.
D) remain at $140,000.

Eaton and Fields Sell 1/4 of Their Partnership Interest to O'Reilly