Force and Zabala Are Partners

Multiple Choice

Force and Zabala are partners.Force's capital balance in the partnership is $98,000 and Zabala 's capital balance is $53,000.Force and Zabala have agreed to share equally in income or loss.Force and Zabala agree to accept Burns with a 25% interest.Burns will invest $56,000 in the partnership.Which of the following statements is correct?

A) Force's capital balance after the admission of Burns is $50,875.
B) Burns' capital after admission is $51,750.
C) Force's capital after the admission of Burns is $98,000.
D) Burns' capital after admission is $56,000.
E) Zabala's capital balance after the admission of Burns is $53,000.