Answer:
Donalds share in the capital was 100,000/300,000= 1/3
May bought 35% so 0.35 of 300,000 = 105,000
Out of this 105,000 1/3 was donalds share so, 1/3*105,000=34,650
Donalds new share = 100,000- 34,650 = 65,350
$65,350 is Donalds new capital account balance
Explanation:
Step 1: Find out Donalds ratio of capital
Step 2: Find out how much may needed to invest for a 35% share
Step 3: Multiply Mays share by 1/3 to find out how much of that share will be bought from donald
Step 4: Subtract the amount from Donalds original capital balance
