If assets on the initial balance sheet are fairly valued, Alex and Betty give their consent, and

Question:

If assets on the initial balance sheet are fairly valued, Alex and Betty give their consent, and Denise pays Claire $51,000 for her interest, the revised capital balances of the partners would be

a. Alex, $38,000; Betty, $66,500; Denise, $51,000.

b. Alex, $38,500; Betty, $66,500; Denise, $48,000.

c. Alex, $37,000; Betty, $65,000; Denise, $51,000.

d. Alex, $37,000; Betty, $65,000; Denise, $48,000.

The following balance sheet is for the partnership of Alex, Betty, and Claire.

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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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Question Posted: Mar 14, 2024 12:00 AM

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If assets on the initial balance sheet are fairly valued, Alex and Betty give their consent, and

Question:

Cash Other Assets $ 20,000 180,000 Liabilities Alex, Capital (40%) Betty, Capital (40%) $200,000 $ 50,000 37,000 65,000 Claire, Capital (20% ) 48,000 Total Liabilities & Capital $200,000

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Advanced Financial Accounting

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