1. X and Y has capital balances of 150,000 and 180,000 respectively. Z is to invest 60,000 for 15% in the partnership interest and also in profits and losses. There is an undistributed net income in the amount of 80,000. Partners X and Y share profits and losses 65:35. 
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3. How much is the capital credit of Z upon his admission?
4.  How much is the bonus to partner X from partner Z?
5.  Assume that an equipment is overvalued, how much is the share of partner Y in the overvaluation of the equipment?

Answer rating: 100% (QA)

Capital credit of Z upon his admission The capital credit of Z upon his admission is equal to ... View the full answer