Jane and Castle Are Partners and Share Equally in Income

Multiple Choice

Jane and Castle are partners and share equally in income or loss. Jane's current capital balance is $140,000 and Castle's is $130,000. Jane and Castle agree to accept Sean with a 30% interest in the partnership. Sean invests $108,000 in the partnership. The balances in Jane's and Castle's capital accounts after admission of the new partner equal:

A) Jane $140,000; Castle $130,000.
B) Jane $142,700; Castle $132,700.
C) Jane $145,000; Castle $135,000.
D) Jane $137,300; Castle $127,300.
E) Jane $135,000; Castle $124,000.