Floyd and Merriam Start a Partnership Business on June 12

question 84

Multiple Choice

Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows: They agreed to admit Ramelow into the business for a one-third interest in the new partnership. He had to bring in a cash contribution of $20,000 for the same. Which of the following is the correct capital account balance of Ramelow after he enters the business?

• A)$20,000
• B)$30,000
• C)$25,000
• D)$50,000

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