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Bell and Cell were partners with capital balances of $1,125 and $1,775 and an income sharing ratio of 2:3. They admitted Dell to a 20%
Bell and Cell were partners with capital balances of $1,125 and $1,775 and an income sharing ratio of 2:3. They admitted Dell to a 20% interest in the partnership, and the total amount of goodwill credited to the original partners was $300.
a) What amount did Dell contribute to the business?
b) What was Cell's capital balance immediately after Dell's admission to the partnership?
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