P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year...
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P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $239,055 for P1, $332,049 for P2, and $175,969 for P3. Among these partners on this date, the income sharing ratios are 38.05% for P1, 40.30% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $140,555 in XYZ Inc for a one-eighth (12.5%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P2 on Jan 1 using the ASSET REVALUATION method? a. $97,821 O b. $93,049 c. $95,435 d. $88,278 e. $90,663 P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $239,055 for P1, $332,049 for P2, and $175,969 for P3. Among these partners on this date, the income sharing ratios are 38.05% for P1, 40.30% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $140,555 in XYZ Inc for a one-eighth (12.5%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P2 on Jan 1 using the ASSET REVALUATION method? a. $97,821 O b. $93,049 c. $95,435 d. $88,278 e. $90,663
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Share of partner P1 3805 Share of partner P2 4030 Share of partner P3 ... View the full answer
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