Danny Ortiz and Angela Hufford are partners, and each has a capital balance of $25,000. To gain admission to the partnership, Derek Peters pays $15,000 directly to Ortiz for one-half of his equity. After the admission of Peters, the total partners' equity in the records of the partnership will be
A)$50,000.
B)$62,500.
C)$65,000.
D)$75,000.

Question

Quizplus · Accepted Answer

Peters' payment to Ortiz does not change the total partners' equity in the partnership; it remains at $50,000, the sum of the original partners' capital balances.

Danny Ortiz and Angela Hufford Are Partners, and Each Has