Allan and Rick Are Partners Who Share Profits and Losses

Multiple Choice

Allan and Rick are partners who share profits and losses in the ratio of 3:2.They have capital balances of $40,000 and $30,000,respectively.If Tammy invests $25,000 for one-third interest,Tammy's capital balance will be:

A) $25,000.
B) $23,750.
C) $31,667.
D) $21,667.