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Issac and Karl are partners. Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000. Bill invested $15,000 to acquire
Issac and Karl are partners. Issac has a capital balance of $25,000 and Karl has a capital balance of $20,000. Bill invested $15,000 to acquire an ownership interest of 30%. How does this transaction affect the balance sheetitems?
A.
Both assets and equity increase.
B.
Assets increase, liabilities decrease, and the equity remain unchanged.
C.
Assets increase and the equity decreases.
D.
Asset increases and the equity remains unchanged.
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