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In the JK Partnership,Jacob's Capital Is $140,000,and Katy's Is $40,000

Question 58

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In the JK partnership,Jacob's capital is $140,000,and Katy's is $40,000.They share income in a 3:2 ratio,respectively.They decide to admit Erin to the partnership.Each of the following questions is independent of the others.
-Refer to the information provided above.Erin directly purchased a one-fifth interest by paying Jacob $33,000 and Katy $9,000.The land account is increased for its implied increase in value before Erin is admitted.What are the capital balances of Jacob and Katy after Erin is admitted into the partnership?
In the JK partnership,Jacob's capital is $140,000,and Katy's is $40,000.They share income in a 3:2 ratio,respectively.They decide to admit Erin to the partnership.Each of the following questions is independent of the others. -Refer to the information provided above.Erin directly purchased a one-fifth interest by paying Jacob $33,000 and Katy $9,000.The land account is increased for its implied increase in value before Erin is admitted.What are the capital balances of Jacob and Katy after Erin is admitted into the partnership?   A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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