ABC partners, whose total capital balance was P400,000, decided to admit D who invested P120,000 cash for

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Question:

ABC partners, whose total capital balance was P400,000, decided to admit D who invested P120,000 cash for a 20% interest in a partnership. The partners agreed to revalue the assets. Find the correct statement.

A, B, and C's capital will decrease
D's equity will decrease
A, B, and C's capital will increase
D's equity will increase