On April 1, 2023, Arnold, Bryan and Mathieu form a limited liability partnership to start a small public accounting firm. Arnold, Bryan and Mathieu have invested $97,000, $47,000 and $54,000 respectively. Mathieu has also invested equipment that is worth $2,000. During the first year of operations in 2023, the firm earned a net income of $271,000. All earnings are to be divided according to the initial capital contribution of each partner. In addition, Arnold and Bryan withdrew $8,100 and $4,400 cash from the business, respectively. On January 1, 2024, a new partner (Harry) was added to the firm. Harry purchased 80% of Arnold's investment and 8% of Mathieu's investment (equity) in the business. b) Calculate the ending capital balance of each partner after the addition of Harry on January 1, 2024?

Answer rating: 100% (QA)

Initial capital Arnold 97000 Bryan 47000 Mathieu 54000 plus 2000 equipment ... View the full answer