189. Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnerships capital balances are Caitlin, $137,000; Chris, $97,000; and Molly, $117,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $77,000. The balance in Caitlins capital account immediately after Pauls admission is:

• $139,580

• $134,420

• $77,000

• $85,600

• $137,000

195. Martin Company purchases a machine at the beginning of the year at a cost of $69,000. The machine is depreciated using the straight-line method. The machines useful life is estimated to be 5 years with a $6,000 salvage value. The book value of the machine at the end of year 5 is:

• $27,600.

• $12,600.

• $6,000.

• $63,000.

• $0.