Caitlin, Chris, and Molly Are Partners and Share Income and Losses

question 72

Multiple Choice

Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership's capital balances are Caitlin, $120,000; Chris, $80,000; and Molly, $100,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $60,000.
-The balance in Caitlin's capital account immediately after Paul's admission is:

• A) $60,000
• B) $123,600
• C) $72,000
• D) $120,000
• E) $116,400

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Definitions:

Nonfamily Household

A living arrangement where individuals reside together without legal or blood-related familial ties.

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The state of not having or being without children.

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Micro-Level Perspective

A social science perspective that focuses on people’s social interaction patterns in specific settings.