Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $66,800 and $31,000, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $42,400. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership? a.$33,400 b.$42,400 c.$66,800 d.$31,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $66,800 and $31,000, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $42,400. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?

a.$33,400
b.$42,400
c.$66,800
d.$31,000
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