Ben White and Lisa Green are partners, and each has a capital balance of $90,000. To gain admission to the partnership, John Brown pays $55,000 directly to White for one-half of his equity. After the admission of Brown, the total partners' equity in the records of the partnership will be

Question

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The total partners' equity remains unchanged at $180,000 because John Brown's payment is made directly to Ben White and does not affect the partnership's total capital.

Ben White and Lisa Green Are Partners, and Each Has