2. Lin and Que are partners with capital balances of $50,000 and $70,000, respectively, and they share profits and losses equally. The partners agree to take Dun into the partnership for a 40 percent interest in capital and profits, while Lin and Que each retain a 30 percent interest. Dun pays $60,000 cash directly to Lin and Que for his 40 percent interest, and goodwill implied by Dun’s payment is recognized on the partnership books. If Lin and Que transfer equal amounts of capital to Dun, the capital balances after Dun’s admittance will be:

a Lin, $35,000; Que, $55,000; Dun, $60,000 b Lin, $45,000; Que, $45,000; Dun, $60,000 c Lin, $36,000; Que, $36,000; Dun, $48,000 d Lin, $26,000; Que, $46,000; Dun, $48,000 use the following information in answering questions 3 and 4:

McC and New are partners with capital balances of $70,000 and $50,000, respectively, and they share profit and losses equally. Oak is admitted to the partnership with a contribution to the partnership of $50,000 cash for a onethird interest in the partnership capital and in future profits and losses.