What will uptons capital balance be after admission

Reference no: EM131970410

Problem

Reed, Sharp, and Tucker were partners with capital account balances of $80,000, $100,000, and $70,000, respectively. They agreed to admit Upton to the partnership for a 30% interest. Upton pays each partner directly for 30% of their interest with payments to Reed, Sharp, and Tucker of $32,000, $40,000, and $28,000, respectively. Before the admission of Upton, the profit and loss sharing ratio was 2:3:2. The partners agreed to use the book value method to account for the admission of Upton to the partnership. What will Upton's Capital balance be after admission into the partnership?

Reference no: EM131970410

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