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, when they agree to admit C for a 20 interest C contributes $38,000 to the partnership and the bonus method is used What amount ...

Total Capital after admission o ...

P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share

Question:

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 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest. C contributes $38,000 to the and the bonus method is used. What amount will be credited for C's beginning capital balance?
A. $20,000
B. $25,000
C. $27,600
D. $32,600
E. $38,000
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...