Encisco and Ollinger Are Partners Who Share Profits and Losses

question 148

Multiple Choice

Encisco and Ollinger are partners who share profits and losses equally and have capital balances of $280000 and $245000 respectively. Parks is admitted into the partnership by investing $245000 for a 30% capital interest. The account balance of Ollinger Capital after the admission of Parks would be

• A) $231000.
• B) $238000.
• C) $252000.
• D) $245000.

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