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P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and...

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Accounting

P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest.

. C contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for C's beginning capital balance? A. $20,000 B. $25,000 C. $27,600 D. $32,600 E. $38,000

I need detailed calculations as to why answer is C)

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