P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $189,807 for P1, $263,633 for P2, and $139,717 for P3. Among these partners on this date, the income sharing ratios are 34.21% for P1, 44,14% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $111,599 in XYZ Inc for a one-fifth (20%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the ASSET REVALUATION method? O a. $111,599 Ob. $117,179 Oc $106,019 Od. $108,809 $114,389

P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $189,807 for P1, $263,633 for P2, and $139,717 for P3. Among these partners on this date, the income sharing ratios are 34.21% for P1, 44,14% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $111,599 in XYZ Inc for a one-fifth (20%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the ASSET REVALUATION method? O a. $111,599 Ob. $117,179 Oc $106,019 Od. $108,809 $114,389

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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