The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2024, were as follows: Apple, capital Bere, capital $ 25,000 75,000 Carroll, capital 50,000 Total partners' capital $ 150,000 The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is Multiple Choice O $25,000. $30,000. $37,500.

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2024,
were as follows:
Apple, capital
Bere, capital
$ 25,000
75,000
Carroll, capital
50,000
Total partners' capital $ 150,000
The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with
a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the
partnership is
Multiple Choice
O
O
$25,000.
$30,000.
$37,500.
Transcribed Image Text:The partners of Apple, Bere, and Carroll LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2024, were as follows: Apple, capital Bere, capital $ 25,000 75,000 Carroll, capital 50,000 Total partners' capital $ 150,000 The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dorr will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dorr should invest in the partnership is Multiple Choice O O $25,000. $30,000. $37,500.
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