Chase and Hatch Are Partners and Share Equally in Income

question 117

Multiple Choice

Chase and Hatch are partners and share equally in income or loss. Chase's current capital balance is $135,000 and Hatch's is $120,000. Chase and Hatch agree to accept Flax with a 30% interest in the partnership. Flax invests $115,000 in the partnership. The balances in Chase's and Hatch's capital accounts after admission of the new partner equal:

• A) Chase $135,000; Hatch $120,000.
• B) Chase $137,000; Hatch $122,000
• C) Chase $133,000; Hatch $118,000.
• D) Chase $139,000; Hatch $120,000.
• E) Chase $135,000; Hatch $124,000.

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