Jacob and Megan Are Partners Who Share Profits in a Ratio

Essay

Jacob and Megan are partners who share profits in a ratio of 2:3,respectively,and have the following capital balances on September 30,20x5:
The partners agree to admit Mitchell to the partnership.Calculate the capital balances of each partner after the admission of Mitchell,assuming that bonuses are recorded when appropriate for each of the following assumptions:
a.Mitchell pays Jacob $100,000 for 40 percent of his interest
b.Mitchell invests $100,000 for a one-sixth interest in the partnership
c.Mitchell invests $100,000 for a 25 percent interest in the partnership
d.Mitchell invests $100,000 for a 15 percent interest in the partnership