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Donkey desires to purchase a one-fourth capital and profit and loss interest in the partnership of Shrek, Fiona, and Muffin. The three partners agree to

Donkey desires to purchase a one-fourth capital and profit and loss interest in the partnership of Shrek, Fiona, and Muffin. The three partners agree to sell Donkey one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $125,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Donkey follow Percentage Capital Interests in Accounts Profits and Losses Shrek $210,000 60% Fiona 130,000 25 Muffin 60,000 15 Total $400,000 All other assets and liabilities are fairly valued by Donkey. Immediately after Donkeys acquisition, what should be the capital balances of Shrek, Fiona, and Muffin, respectively? Answer $157,500; $97,500; $45,000 $195,000; $123,750; $56,250 $222,500; $138,750; $63,750 $260,000; $165,000; $75,000

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