floriannelew629 floriannelew629

13-05-2024
Business

Answered

The capital account balances for Donald & Hanes LLP on January 1, 2021, were as follows:

Donald, capital $200,000
Hanes, capital $100,000

Donald and Hanes shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit May to the partnership with a 35% interest in partnership capital and net income. May invested $100,000 cash, and the bonus method is used. What is the balance of Donald's capital account after the new partnership is created?

Answer :

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