Brown pays $90,000 to the Tripper Sprung Partnership in exchange for 30% ownership. Before the admission of Brown, the other partners had the following capital accounts and profit and loss sharing percentages: Tripper: $70,000 (60%) Sprung : $50,000 (40%) Using the bonus method, what will be the balance in Sprung’s capital account after the admission of Brown. $10,800 $86,200 $39,200 $57,800 $60,800

Brown pays $90,000 to the Tripper Sprung Partnership in exchange for 30% ownership. Before the admission of Brown, the other partners had the following capital accounts and profit and loss sharing percentages: Tripper: $70,000 (60%) Sprung : $50,000 (40%) Using the bonus method, what will be the balance in Sprung’s capital account after the admission of Brown. $10,800 $86,200 $39,200 $57,800 $60,800

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 2PA: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...

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