Partnership Dissolution - Admission of New Partner 1. A, B, and Care partners whose capital balances and share in profits are as follows: 250,000 50% B 150,000 25% 100,000 25% Dis admitted into the partnership by paying 60,000 for 1/3 of the share in equity of B and by contributing 200,000. The partners agree to the total capitalization to 750,000, 1/3 of which is D's capital credit. D's share in net income is also 1/3 and the old partners are to divide net income in the old ratio among themselves. The profit and loss sharing ratio among A, B, and Cafter the admission of Cueto is a. 50%, 25%, 25%, respectively b. 30%, 15%, 15%, respectively C. 2/6, 1/6, 1/6, respectively d. 1/3, 1/3, 1/3, respectively 2. J, K, and L are partners with capital balances of 180,000, 100,000, and 100,000, respectively. M is admitted into the partnership with a one-fourth interest upon payment of 160,000. If the old partners share profits and losses in the ratio of 2/5, 2/5, and 1/5, then the capital account of Cortez after the admission of M will show a balance of a. 160,000 b. 180,000 c. 184,000 d. 188,000 3. Red desires to purchase a one-fourth capital and profit and loss interest in the partnership of Blue, Yellow and Green. The three partners agree to sell Red one-fourth of their respective capital and profit and loss interest in exchange for a total payment 200,000. The profit and loss ratio and capital balances of the partners are as follows: Blue (60%) 400,000; Yellow (30%) 200,000; Green (10%) 100,000. Assuming assets are fairly valued and that Cardel purchases a one-fourth capital and profit and loss from the partnership paying 200,000, what would be the capital balances of Blue, Yellow and Green after the admission of Red? a. 300,000; 150,000; 75,000 b. 400,000; 200,000; 10,000 c. 385,000; 192,500; 97,500 d. 460,000; 230,000; 110,000