Sara invests $120,000 for a 30 percent interest in a partnership in which the other partners have capital totaling $200,000 before admitting Sara.After distribution of the bonus,what is Sara's capital balance?
A)$60,000
B)$96,000
C)$120,000
D)$144,000

Question

Quizplus · Accepted Answer

Sara's capital balance is 30% of the total capital after her investment, which is $200,000 + $120,000 = $320,000. Therefore, Sara's capital balance is $320,000 x 30% = $96,000.

Sara Invests $120,000 for a 30 Percent Interest in a Partnership