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P. L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively. Consider each of the following independent situations regarding a new partner admission. Assume C invests $38,000 in cash for a 20% ownership interest. The money goes to the partnership. Bonus method is used. What is P's capital balance after C's contribution? $44,600. $46,880. $53,120. O$55,400.

P. L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively. Consider each of the following independent situations regarding a new partner admission. Assume C invests $38,000 in cash for a 20% ownership interest. The money goes to the partnership. Bonus method is used. What is P's capital balance after C's contribution? $44,600. $46,880. $53,120. O$55,400.

FINANCIAL ACCOUNTING
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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P. L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively. Consider each of the following independent situations regarding a new partner admission. Assume C invests $38,000 in cash for a 20% ownership interest. The money goes to the partnership. Bonus method is used. What is P's capital balance after C's contribution? $44,600. $46,880. $53,120. O$55,400.
Transcribed Image Text:P. L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively. Consider each of the following independent situations regarding a new partner admission. Assume C invests $38,000 in cash for a 20% ownership interest. The money goes to the partnership. Bonus method is used. What is P's capital balance after C's contribution? $44,600. $46,880. $53,120. O$55,400.
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