Aris, Blair, and Cassie are partners who split profits in a 3:3:4 ratio. They have recently been overwhelmed by the volume of work and have agreed to admit Shane to the partnership in exchange for a monetary investment. Their capital accounts have current balances of USD60,000, USD80,000, and USD120,000, respectively. Assuming Shane is given a 20% interest in the partnership in exchange for a Php60,000 monetary investment, what are Cassie and Shane's capital balances after Shane's admission?
Aris, Blair, and Cassie are partners who split profits in a 3:3:4 ratio. They have recently been overwhelmed by the volume of work and have agreed to admit Shane to the partnership in exchange for a monetary investment. Their capital accounts have current balances of USD60,000, USD80,000, and USD120,000, respectively. Assuming Shane is given a 20% interest in the partnership in exchange for a Php60,000 monetary investment, what are Cassie and Shane's capital balances after Shane's admission?
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Aris, Blair, and Cassie are partners who split profits in a 3:3:4 ratio. They have recently been overwhelmed by the volume of work and have agreed to admit Shane to the
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