What should be the capital balances of brown and greene

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Question - Pink desires to purchase a one-fourth capital and profit and loss interest in the partnership of Brown, Greene, and Red. The three partners agree to sell Pink one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Pink follow

 

Capital Accounts

Percentage Interests in Profits and Losses

Brown

$168,000

50%

Greene

104,000

35

Red

48,000

15

Total

$320,000

 

All other assets and liabilities are fairly valued and implied goodwill is to be recorded prior to the acquisition by Pink. Immediately after Pink's acquisition, what should be the capital balances of Brown, Greene, and Red, respectively?

Reference no: EM133178377

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