Monica Turner and Anna Frost have capital balances of $200,000 and $250,000,respectively and have no net income/net loss agreement.On January 1,2017,they agree to admit Emma Brown into their partnership and give her a 30% interest in the business.
Determine the balance in each partners' capital account immediately following the admission of Emma in each of the following independent cases:
a_Emma contributes $250,000 cash to the business.
b_Emma contributes equipment valued at $275,000 to the business.
c_Emma contributes land valued at $180,000 to the business.

Question

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The Answer of Monica Turner and Anna Frost have capital balances of $200,000 and $250,000,respectively and have no net income/net loss agreement.On January 1,2017,they agree to admit Emma Brown into their partnership and give her a 30% interest in the business.
Determine the balance in each partners' capital account immediately following the admission of Emma in each of the following independent cases:
a_Emma contributes $250,000 cash to the business.
b_Emma contributes equipment valued at $275,000 to the business.
c_Emma contributes land valued at $180,000 to the business.

Monica Turner and Anna Frost Have Capital Balances of $200,000