1) Mace and Bowen are partners and share equally in income or loss. Mace's current capital balance is $189,000 and Bowen's is $165,000. Mace and Bowen agree to accept Kent with a 30% interest in the partnership. Kent invests $169,000 in the partnership. The balances in Mace's and Bowen's capital accounts after admission of the new partner equal:

2) In closing the accounts at the end of a period, the partners' capital accounts are credited for their share of the partnership net income or debited for their share of the partnership loss. (TRUE/FALSE)

3) A capital deficiency exists when a partner has a debit balance in their capital account at the point of final cash distribution during liquidation. (TRUE/FALSE)