Ask Question
BusinessBusiness
11 February, 09:20

In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.

Refer to the information provided above. What amount will Erin have to invest to give her a one-fourth interest in the capital of the partnership if no goodwill or bonus is recorded?

A. $45,000

B. $50,000

C. $60,000

D. $66,000

+3
Answers (1)
  1. 11 February, 11:13
    0
    C. $60,000

    Explanation:

    For computing the Erin investment, we have to assume the things which is shown below:

    Let us assume Erin investment be X

    We know that Erin would contributed 1 : 4 investment in partners capital

    So, the equation would be

    1 : 4 * ($140,000 + $40,000 + X) = X

    1 : 4 * ($180,000 + X) = X

    $45,000 + 1 : 4X = X

    So, $45,000 = 3 : 4X

    So, X = $45,000 * 4 : 3

    = $60,000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Is it true or false that shareholders in a corporation are not legally responsible for paying the debts of the corporation
Answers (1)
Partial adjusted trial balance for Blue Spruce Corp. at December 31, 2017, includes the following accounts: Retained Earnings $16,300, Dividends $5,800, Service Revenue $36,100, Salaries and Wages Expense $13,800, Insurance Expense $1,790, Rent
Answers (1)
Recall that Festinger and Carlsmith gave participants either $1 or $20 for telling others that an experiment was fun and interesting. The experiment entailed turning pegs on a pegboard one quarter turn at a time.
Answers (1)
A profit-maximizing, monopolistically competitive restaurant serves 60 burgers a day at a total cost of $180 and earns a total profit of $180. In the long run, everything else equal, the a. restaurant will charge more than $6 per burger. b.
Answers (1)
Using the following information: (a) The bank statement balance is $3,868. (b) The cash account balance is $3,971. (c) Outstanding checks amounted to $764. (d) Deposits in transit are $743. (e) The bank service charge is $115.
Answers (1)
New Questions in Business
Consider the market for coffee beans. suppose that the prices of all other caffeinated beverages go up 30 percent while at the same time a new fertilizer boosts production at coffee plantations dramatically.
Answers (1)
At January 31, the end of the first month of the year, the usual adjusting entry transferring expired insurance to an expense account is omitted.
Answers (1)
Two part-time employees share one full-time job. A girl works Mondays comma Thursdays , Wednesdays, and Fridays, and a boy works Tuesdays. The job pays an annual salary of $28 comma 602. What annual salary does each employee earn?
Answers (1)
A piece of property bought by XYZ Corporation a few years ago was sold for $5 M. The cost basis for this property was $2.75 M. The company had a taxable income of $12.15 million in the year the property was sold.
Answers (1)
What must be marked on ready-to-eat bags (PHFs): Best before date Temperature to reheat Name of the food Shelf to store the food on
Answers (2)
Home » Business » In the JK partnership, Jacob's capital is $140,000, and Katy's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Erin to the partnership. Each of the following questions is independent of the others.
Sign Up Forgot Password?