partnership
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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Question
The account balances for April & May LLP on January 1,2020, were as follows: April, Capital 200,00. May, Capital, 100,000. April and May shared net income and losses in the ratio of 3:2 respectively. The partners agreed to admit July to the partnership with a 35% interest in partnership capital and net income. July invested 100,000 cash and no goodwill was recognized. What is the balance of April’s capital account after the new partnership is created?
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