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Frank and Douglas admit Martha to their partnership, with Martha paying $48,000 more than the book value of her equity in the new business. Frank
Frank and Douglas admit Martha to their partnership, with Martha paying $48,000 more than the book value of her equity in the new business. Frank and Douglas have no formal profit-and-loss-sharing agreement. What effect does admitting Martha to the partnership have on the capital balances of Frank and Douglas? OA. Debit the Frank and Douglas capital accounts for $24,000 each. OB. Credit the Frank and Douglas capital accounts for $24,000 each. C. Credit the Frank and Douglas capital accounts for $48,000 each. O D. Cannot be determined because there's no profit-and-loss sharing ratio
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