Question

Mace and Bowen are partners and share equally in income or loss. Maces current capital balance is $135,000 and Bowens is $1
Mace $139,000; Bowen $120,000. Mace $135,000; Bowen $124,000.
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Answer #1

Total capital balances after admission of Kent

= 135,000+120,000+115,000 = 370,000

(370,000*30%) = 111,000

For this, Kent invested 115,000.

So the excess 4000 is shared equally among old partners

Mace = 135,000 + (4,000*1/2) = 137,000

Bowen = 120,000 + (4,000*1/2) = 122,000

Option B

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