1. Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88.000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy's capital account after Thadez's admission? A. 178,250 B. 187.000 C. 199,000 D. 181,750
1. Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances: Jeremy 180,000 Eli 70,000 Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88.000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy's capital account after Thadez's admission? A. 178,250 B. 187.000 C. 199,000 D. 181,750
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1. Jeremy and Eli are partners who share profits and losses equally. The capital accounts of the partners have the following balances:
Jeremy 180,000
Eli 70,000
Thadez desires to join the firm and offered to invest 96,000 for a 1/3 interest. Jeremy and Eli declined his offer, but they extended a counter-offer to Thadez of 88.000 for a 25% interest in the capital and profits and losses of the firm. If Thadez accepted the offer, what would be the balance of Jeremy's capital account after Thadez's admission?
A. 178,250
B. 187.000
C. 199,000
D. 181,750
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