On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.
On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. O $636000. $716000. O $0.
Chapter11: Invest Or Losses
Section: Chapter Questions
Problem 38P
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Transcribed Image Text:On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%, 20% and
60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the
retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest?
Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances.
$636000.
$716000.
O $0.
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