May and Jun are partners with profit and loss ratio of 50:50 and capital balances of $300,000 and $400,000, respectively. On June 09, 2022, Julie was admitted into the partnership by investment for a 20% of the total partnership capitalization. However, before the admission of Julie, the partners agreed that the asset "Land" should be revalued from $900,000 to $1,000,000. How much cash is to be invested by Julie?

May and Jun are partners with profit and loss ratio of 50:50 and capital balances of $300,000 and $400,000, respectively. On June 09, 2022, Julie was admitted into the partnership by investment for a 20% of the total partnership capitalization. However, before the admission of Julie, the partners agreed that the asset "Land" should be revalued from $900,000 to $1,000,000. How much cash is to be invested by Julie?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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