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Upon formation of a partnership, Sally contributed 70% of the net assets, Mary contributed 30%, and Jenny contributed no assets. However, Jenny has special expertise.
Upon formation of a partnership, Sally contributed 70% of the net assets, Mary contributed 30%, and Jenny contributed no assets. However, Jenny has special expertise. In recognition of this fact, the partnership agreement specifies that Jenny is entitled to 15% of the net assets of the business. Profits and losses are shared based upon capital balances. Under the agreement, Marys capital share is:
25.5%
25%
20%
15.5%
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