=+EX 12-18 Statement of members’ equity, admitting new member objs. 2, 3, 5

✔

a. 3:7 Pryor and Lester are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $12,000 and $8,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $16,000.