Hope Abrams and Crystal Santori are partners who share in the income equally and have capital balances

Question:

Hope Abrams and Crystal Santori are partners who share in the income equally and have capital balances of $180,000 and $62,500, respectively. Abrams, with the consent of Santori, sells one-third of her interest to David Cruz. What entry is required by the partnership if the sales price is (a) $60,000? (b) $80,000?

Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...