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 $239,055 for P1, $332,049 for P2, and $175,969 for P3. Among these partners on this date, the income sharing ratios are 38.05% for P1, 40.30% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $140,555 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 P3 on Jan 1 using the BONUS method? O a. $8,404 O b. $8,604 c. $8,204 Od. $8,004 e. $8,805 P1, P2, and P3 are partners in XYZ Inc. Their capital balances on Dec 31, Year 5, are $239,055 for P1, $332,049 for P2, and $175,969 for P3. Among these partners on this date, the income sharing ratios are 38.05% for P1, 40.30% for P2, and the remainder for P3. On Jan 1, Year 6, a new partner P4 invests $140,555 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 P3 on Jan 1 using the BONUS method? O a. $8,404 O b. $8,604 c. $8,204 Od. $8,004 e. $8,805
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THE ANSWER IS D EXPLANATION Capital Before Investment of P4 P1239055 P2332049 P3175969 Total Capital ... View the full answer
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