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 $202,119 for P1, $280,737 for P2, and $148,780 for P3. Among these partners on this date, the income sharing ratios are 35.17% for P1, 43.18% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $118,838 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 BONUS method? a. $11,078 b. $10,267 Oc. $11,348 O d. $10,807 O e. $10,537 P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $202,119 for P1, $280,737 for P2, and $148,780 for P3. Among these partners on this date, the income sharing ratios are 35.17% for P1, 43.18% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $118,838 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 BONUS method? a. $11,078 b. $10,267 Oc. $11,348 O d. $10,807 O e. $10,537
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Solution Total partnership capital after admission of P4 202119 280737 148780 118838 750... View the full answer
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