Mark ,Johnny and Lucas are existing partners with capital balances as of January 1, 2020:

Mark

100,000

Johnny

150,000

Lucas

200,000

They share profits and losses on the ratio of 5:3:2, respectively. On September 1, 2020, Mark withdraw from the partnership. Partners agreed that at the time of withdrawal, assets should be revalued to a net increase of $20,000. The partnership net income for eight months is $140,000. Partners agreed to pay Mark for $195,000 for this interest and remaining partners' capital accounts. Immediately after Mark's withdrawal, what are the capital balances of Johnny and Lucas, respectively?

Answer rating: 100% (QA)

To calculate the capital balances of Johnny and Lucas immediately after Marks withdrawal we need to ... View the full answer