Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $135,000 and Bowen's is $120,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $115,000 in the partnership.
- The amount credited to Kent's capital account is:

Question

Quizplus · Accepted Answer

The total capital after Kent's investment is $370,000 ($135,000 + $120,000 + $115,000). Kent's 30% interest means his capital account should be 30% of $370,000, which is $111,000.

Mace and Bowen Are Partners and Share Equally in Income