Peters and Chong Are Partners and Share Equally in Income

question 40

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 amount credited to Aaron's capital account is:

• A) $114,533.
• B) $81,000.
• C) $110,400.
• D) $98,000.
• E) $102,600.

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Definitions:

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The 42nd President of the United States (1993-2001), known for his policies on the economy, welfare reform, and his involvement in several scandals.