Question
Cash and current assets - $66,000 Land - 396,000 Building and equipment (net) - 220,000 Totals = $682,000 Liabilities - $88,000 L, capital - 44,000
Cash and current assets - $66,000
Land - 396,000
Building and equipment (net) - 220,000
Totals = $682,000
Liabilities - $88,000
L, capital - 44,000
M, capital - 88,000
N, capital - 198,000
O, capital - 264,000
Totals = $682,000
P contributes $121,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: L, 10 percent; M, 30 percent; N, 20 percent; and O, 40 percent. After P makes this investment, what are the individual capital balances?
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