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18. OOO and UUU are partners who share profits and losses equally. The capital accounts of the partners have the following balances: OOO          180,000 UUU             70,000 EEE desires to join the firm and offered to invest 96,000 for a 1/3 interest. OOO and UUU declined his offer, but they extended a counter-offer to EEE of 88,000 for a 25% interest in the capital and profits and losses of the firm. If EEE accepted the offer, what would be the balance of OOO’s capital account after EEE’s admission? A. 199,000 B. 187,000 C. 178,250 D. 181,750

18. OOO and UUU are partners who share profits and losses equally. The capital accounts of the partners have the following balances: OOO          180,000 UUU             70,000 EEE desires to join the firm and offered to invest 96,000 for a 1/3 interest. OOO and UUU declined his offer, but they extended a counter-offer to EEE of 88,000 for a 25% interest in the capital and profits and losses of the firm. If EEE accepted the offer, what would be the balance of OOO’s capital account after EEE’s admission? A. 199,000 B. 187,000 C. 178,250 D. 181,750

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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18. OOO and UUU are partners who share profits and losses equally. The capital accounts of the partners have the following balances:

OOO          180,000
UUU             70,000

EEE desires to join the firm and offered to invest 96,000 for a 1/3 interest. OOO and UUU declined his offer, but they extended a counter-offer to EEE of 88,000 for a 25% interest in the capital and profits and losses of the firm. If EEE accepted the offer, what would be the balance of OOO’s capital account after EEE’s admission?

A. 199,000
B. 187,000
C. 178,250
D. 181,750

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