E12-5 Trey Falco is admitted to a partnership. Prior to his admission, the partnership books show Sean Graham's capital balance at $100,000 and Kelly Ort's capital balance at $50,000. Compute each partner's equity on the books of the new partnership under the following plans:

a. Falco pays $92.000 for Ott's equity. Falco's payment is not an investment in the partner- ship, but instead goes directly to Ou

b. Falco invests $75,000 to acquire a one-third interest in the partnership.

c. Falco invests $60.000 to acquire a one-fourth interest in the partnership.