Fred and Walden are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on September 30, 2010:
$\begin{array}{ll}
\text { Fred, Capital } & \text { Walden, Capital } \
\$ 25,000 \mathrm{Cr} . & \$ 50,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Miller to the partnership. Calculate the capital balances of each partner after the admission of Miller, assuming that bonuses are recorded when appropriate for each of the following assumptions:
a. Miller pays Fred $25,000 for 50 percent of his interest
b. Miller invests $25,000 for a one-fourth interest in the partnership
c. Miller invests $25,000 for a 30 percent interest in the partnership
d. Miller invests $25,000 for a 20 percent interest in the partnership

Question

Fred and Walden are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on September 30, 2010:
 $\begin{array}{ll}
\text { Fred, Capital } & \text { Walden, Capital } \
\$ 25,000 \mathrm{Cr} . & \$ 50,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Miller to the partnership. Calculate the capital balances of each partner after the admission of Miller, assuming that bonuses are recorded when appropriate for each of the following assumptions: 
a. Miller pays Fred $25,000 for 50 percent of his interest
b. Miller invests $25,000 for a one-fourth interest in the partnership
c. Miller invests $25,000 for a 30 percent interest in the partnership
d. Miller invests $25,000 for a 20 percent interest in the partnership

Quizplus · Accepted Answer

The Answer of Fred and Walden are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on September 30, 2010:
 $\begin{array}{ll}
\text { Fred, Capital } & \text { Walden, Capital } \
\$ 25,000 \mathrm{Cr} . & \$ 50,000 \mathrm{Cr} .
\end{array}$ The partners agree to admit Miller to the partnership. Calculate the capital balances of each partner after the admission of Miller, assuming that bonuses are recorded when appropriate for each of the following assumptions: 
a. Miller pays Fred $25,000 for 50 percent of his interest
b. Miller invests $25,000 for a one-fourth interest in the partnership
c. Miller invests $25,000 for a 30 percent interest in the partnership
d. Miller invests $25,000 for a 20 percent interest in the partnership

Fred and Walden Are Partners Who Share Profits and Losses Fred, Capital Walden, Capital $25,000Cr.$50,000Cr.\begin{array}{ll}\text { Fred, Capital } & \text { Walden, Capital } \\\$ 25,000 \mathrm{Cr} . & \$ 50,000 \mathrm{Cr} .\end{array} Fred, Capital $25,000Cr.​ Walden, Capital $50,000Cr.​

Fred and Walden Are Partners Who Share Profits and Losses $\begin{array}{ll}\text { Fred, Capital } & \text { Walden, Capital } \\\$ 25,000 \mathrm{Cr} . & \$ 50,000 \mathrm{Cr} .\end{array}$