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 $189,807 for P1, $263,633 for P2, and $139,717 for P3. Among these partners on this date, the income sharing ratios are 34.21% for P1, 44.14% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $111,599 in XYZ Inc for a one-fifth (20%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the ASSET REVALUATION method? a. $11,599 b. $117,179 Oc. $106,019 d. $108,809 e. $114,389 P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $189,807 for P1, $263,633 for P2, and $139,717 for P3. Among these partners on this date, the income sharing ratios are 34.21% for P1, 44.14% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $111,599 in XYZ Inc for a one-fifth (20%) interest in capital. In the journal entry to admit the new partner P4, how much capital will be credited or debited to P4 on Jan 1 using the ASSET REVALUATION method? a. $11,599 b. $117,179 Oc. $106,019 d. $108,809 e. $114,389
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