The following balance sheet information is for the partnership of Axe, Barr, and Cole: ...
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Accounting
The following balance sheet information is for the partnership of Axe, Barr, and Cole:
Cash $ 210,000 Liabilities $ 510,000
Other assets 1,500,000
Total 1710000
Axe, Capital (40%) 300,000
Barr, Capital (40%) 480,000
Cole, Capital (20%) 420,000
Total $1,710,000
Figures shown parenthetically reflect agreed profit and loss sharing percentages.
If the assets are fairly valued on the above balance sheet and the partnership wishes to admit Dent as a new 1/5 partner without recording goodwill or bonus, Dent should invest cash or other assets of
a. $427,500.
b. $240,000.
c. $300,000.
d. $342,000.
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