Peters and Chong Are Partners and Share Equally in Income

question 66

Multiple Choice

Peters and Chong are partners and share equally in income or loss. Peters' current capital balance is $140,000 and Chong's is $130,000. Peters and Chong agree to accept Aaron with a 30% interest in the partnership. Aaron invests $98,000 in the partnership.
- The balances in Peters's and Chong's capital accounts after admission of the new partner equal:

• A) Peters $140,000; Chong $130,000.
• B) Peters $133,800; Chong $123,800.
• C) Peters $146,200; Chong $136,200.
• D) Peters $145,000; Chong $135,000.
• E) Peters $166,027; Chong $156,027.

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