The partnership of Ned,Fred,and Ted had total capital of $1,140,000 on December 31,2017,as follows:
Profit and loss sharing percentages are shown in parentheses.
Assume that Ed became a partner by investing $300,000 in the Ned,Fred,and Ted partnership for a 25 percent interest in the capital and profits,and the partnership assets are revalued.Under this assumption:
A) Ted's capital credit will be $300,000.
B) Ned's capital will be increased to $394,000.
C) total partnership capital after Ed's admission to the partnership will be $1,200,000.
D) net assets of the partnership will increase by $380,000 including Ed's interest.
Correct Answer:
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