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_____ X and Y Are Partners and Have Capital Balances

Question 29

Multiple Choice

_____ X and Y are partners and have capital balances of $70,000 and $30,000, respectively. X and Y share profits and losses in the ratio 6:4, respectively. Z is admitted into the partnership by purchasing one-fifth of the capital interests of X and Y for a total price of $25,000. The capital balances of X, Y, and Z will be:


A) $56,000, $24,000, and $20,000, respectively.
B) $56,000, $24,000, and $25,000, respectively.
C) $73,000, $32,000, and $20,000, respectively.
D) $70,000, $30,000, and $25,000, respectively.
E) $70,000, $30,000, and $20,000, respectively.

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