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Frank and Harry Are Partners

Question 97

Multiple Choice

Frank and Harry are partners.Frank has a capital balance of $51,000 and Harry has a capital balance of $40,000.Bill contributes a building with a fair market value of $27,000 to the partnership for an ownership interest of 20%.Calculate Bill's capital in the new partnership.


A) $13,000
B) $27,000
C) $24,000
D) $23,600

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