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. O $46,880. O $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. O $46,880. O $53.120. O $55,400.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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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.
O $46,880.
O $53.120.
O $55,400.
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