Allan and Ralph Are Partners

question 142

Multiple Choice

Allan and Ralph are partners.Allan has a capital balance of $92,000 and Ralph has a capital balance of $75,000.Carol invested $60,000 to acquire an ownership interest of $50,000.Which of the following is true of the impact of the transaction on the balance sheet?

• A)Asset increases and the equity will remain unchanged.
• B)Both assets and equity will increase.
• C)Assets will increase and equity will decrease.
• D)Assets will increase and the equity will remain unchanged.

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