Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances...
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Accounting
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows:
| Floyd | $55,000 |
| Merriam | 17,000 |
They agreed to admit Ramelow into the business for a one-third interest in the new partnership. Ramelow contributes $24,000 cash in exchange for the partnership interest.
What is the correct capital account balance of Ramelow after he enters the business?
| a)$28,000 | ||
| b)$32,000 | ||
| c)$55,000 | ||
| d)$24,000 |
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