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Mazyrski [523]
3 years ago
15

Chase and Hutch are partners and share equally in income or loss. Chase's current capital balance is $ 75,000 and Hutch's is $12

0,000. Chase and Hutch agree to accept Frank with a 30% interest in the partnership. Frank invests $90,000 in the partnership. The amount credited to Frank's capital account is:
Business
1 answer:
klasskru [66]3 years ago
6 0

Answer:

$85,500 will be credited in the Frank's capital account.

Explanation:

Chase's current capital balance = $75,000

Hutch's current capital balance = $120,000

Frank invests = $90,000

Frank's Interest in Partnership = 30%

Total Capital Investment in business = $75,000 + $120,000 + $90,000

Total Capital Investment in business = $285,000

Frank's Share = 285,000 x 30% = $85,500

$85,500 will be credited in the Frank's capital account.

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Answer:

Attached is the complete questions containing the missing variables:

The activity rates for each activity are stated thus:

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Cutting activity rate =$225600/(4000+5400)=$24/cutting hour

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Reworking activity rate=$45000/(150+450)=$75/reworking hour

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