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Question - The capital balances for Andy & Lau LLP on January 2014, were as follows:
Andy, Capital 200,000
Lau, Capital 100,000
Andy and Lau shared net income and losses in the ratio of 3:2, respectively. The partners agreed to admit Jackie to the partnership with a 35% interest in the partnership capital and net income. Jackie invested $100,000 cash, and no goodwill was recognized.
a) What is the Jackie's capital balance after the new partnership is created?
b) What is the Andy's capital balance after the new partnership is created?
c) What is the Lau's capital balance after the new partnership is created?
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