Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Caitlin, $135,000; Chris, $95,000; and Molly, $115,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $175,000. The balance in Caitlin’s capital account immediately after Paul’s admission is: Top of Form Multiple Choice $113,700 $123,400 $136,300 $175,000 $156,300

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Chapter1: Financial Statements And Business Decisions
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Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership’s capital balances are Caitlin, $135,000; Chris, $95,000; and Molly, $115,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $175,000. The balance in Caitlin’s capital account immediately after Paul’s admission is:

Top of Form

Multiple Choice

$113,700

$123,400

$136,300

$175,000

$156,300

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