Answer:
C. Bill, Capital is credited for $20,000 and Bianca, Capital is debited for $20,000.
Explanation:
The journal entry to record this given transaction is shown below:
Bianca, Capital A/c $20,000
To Bill, Capital A/c $20,000
(Being the ownership interest is recorded)
The computation is shown below:
= Bianca capital balance × percentage of ownership interest
= $40,000 × 50%
= $20,000
Therefore, the correct option is c.