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 15% interest in the firm for $130,000.Assuming Burt takes the offer,the entry to record his investment in the partnership includes a:

A) credit to gain on sale of partnership interest for $85,000
B) debit to Burt, Capital for $45,000
C) credit to Burt, Capital for $45,000
D) debit to Cash for $130,000