Frank and Harry are partners.Frank has a capital balance of $51,000 and Harry has a capital balance of $40,000.Bill contributes a building with a fair market value of $27,000 to the partnership for an ownership interest of 20%.Calculate Bill's capital in the new partnership.

Question

Quizplus · Accepted Answer

Bill will get an ownership interest of 20% of ($51,000 + $40,000 + $27,000)
= 0.2 × $118,000 = $23,600

Frank and Harry Are Partners