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Existing partners Partner L Partner M Capital balances $50,000 $60,000 % interest in Capital % interest in Profit 30% 70% 40% 60% Assume partner

Existing partners Partner L Partner M Capital balances $50,000 $60,000 % interest in Capital % interest in

Existing partners Partner L Partner M Capital balances $50,000 $60,000 % interest in Capital % interest in Profit 30% 70% 40% 60% Assume partner N invests $40,000 in the business in exchange for 20% interest in capital and 20% interest in profit and loss. The asset appreciation attributable to the new partnership would be: The total value of the new partnership would be: A. $209,000 B. $50,000 C. $75,000 D. $250.000

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