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Peter, Paul and Mary have capital balances of $150,000, $195,000 and $235,000 respectively when Paul and Mary agree to buy Peters share of the business
Peter, Paul and Mary have capital balances of $150,000, $195,000 and $235,000 respectively when Paul and Mary agree to buy Peters share of the business using partnership assets. The current profit or loss ratio is 2:3:5, respectively. Peter is paid $126,000. Once the transaction has been recorded, the total capital will be
A)$406,000.
B) $430,000.
C) $580,000.
D) $454,000.
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