Question
The partners of Avrohom, Berel, and Huvi LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1,
The partners of Avrohom, Berel, and Huvi LLP share net income and losses in a 5:3:2 ratio, respectively. The capital account balances on January 1, 2021, were as follows:
Avrohom, capital$25,000 Berel, capital 75,000 Huvi, capital 50,000 Total partners' capital$150,000The carrying amounts of the assets and liabilities of the partnership are the same as their current fair values. Dovid will be admitted to the partnership with a 20% capital interest and a 20% share of net income and losses in exchange for a cash investment. The amount of cash that Dovid should invest in the partnership is:
Group of answer choices
Group of answer choices
$75,000.
$30,000.
$90,000.
$25,000.
$37,500.
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