Problem A. Rhian and Mary are partners with profit and loss ratio of 75:25 and capital balances of P175,000 and 87,500 respectively. Gale is to be admitted into the partnership by purchasing a 20% interest in the capital, profits nd losses for P105,000. Assuming that no asset revaluation is to be made, the capital balances of Rhian and Mary, respectively, after admission of Gale are: Rhian Mary A. P140,000 P70,000 B. 210,000 105,000 C. 196,000 66,500 D. 175,000 87,500 ssuming that equipment of the partnership is undervalued, the capital balances of Rhian, Mary and Gale, espectively, after the admission are: Rhian Mary Gale A. P175,000 P87,500 P105,000 B. 336,875 135,625 52,500 C. 140,000 70,000 52,500 D. 297,500 122,500 105,000