On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.

On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.

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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Question

On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and
60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the
retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest?
Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances.
$636000.
$716000.
O $0.

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