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Abby and Bailey are partners who share income in the ratio of 2:1 and have capital balances of $68,100 and $28,200, respectively. With the consent of Bailey, Sandra buys one-half of Abby's interest for $40,900. For what amount will Abby's capital account be debited to record admission of Sandra to the partnership?
a.$34,050
b.$28,200
c.$68,100
d.$40,900

Respuesta :

Answer:

a.$34,050

Explanation:

In the question, it is mentioned that the capital balances of Abby and Bailey are $68,100 and $28,200 respectively. And, the Sandra buys one half of Abby interest which equals to

= Abby capital balance × half-percentage  

= $68,100 × 50%

= $34,050

The amount which is given for buying Abby interest i.e $40,900 is not relevant. Hence, it is ignored

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