Table 12-7 Bill, Bob, and Bo, Are Partners in the Trendy Company

Table 12-7
Bill, Bob, and Bo, are partners in the Trendy Company, a retailer of inexpensive kids' wear. They share profits and losses in a 1:4:5 ratio and have decided to expand their business territory. They have agreed to admit Burt to the partnership for a cash investment. Their capital balances are currently $60,000, $100,000, and $140,000, respectively.
-Refer to Table 12-7.Burt has been offered a 25% interest in the firm for $60,000 cash investment.Assuming Burt takes the offer,the entry to record his investment in the partnership includes a:

A) debit to Cash for $75,000
B) debit to loss on sale of partnership interest for $46,000
C) credit to Bill, Capital for $1,500
D) debit to Bob, Capital for $12,000