n the ABC partnership the capital balances of Allan, Ben, and Carl, who share income in the ratio of 5:3:2 is 600,000, 400,000, and 300,000, respectively. The partners agreed to admit Dan. Before the admission of Dan, the three current partners agreed that land is to be increased to account for its fair value. In the admission, Dan directly purchases 20% by paying Allan 145,000, Ben 95,000 and Carl 70,000. If there was no gain to any of the three partners for the purchase of interest, by what amount is the land account increased? a) 0 b) 60,000 c) 250,000 d) 510,000

FINANCIAL ACCOUNTING
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ISBN:9781259964947
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Chapter1: Financial Statements And Business Decisions
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In the ABC partnership the capital balances of Allan, Ben, and Carl, who share income in the ratio of 5:3:2 is 600,000, 400,000, and 300,000, respectively. The partners agreed to admit Dan. Before the admission of Dan, the three current partners agreed that land is to be increased to account for its fair value. In the admission, Dan directly purchases 20% by paying Allan 145,000, Ben 95,000 and Carl 70,000. If there was no gain to any of the three partners for the purchase of interest, by what amount is the land account increased? a) 0 b) 60,000 c) 250,000 d) 510,000 

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