Caitlin, Chris, and Molly Are Partners and Share Income and Losses

Caitlin, Chris, and Molly are partners and share income and losses in a 3:4:3 ratio. The partnership's capital balances are Caitlin, $120,000; Chris, $80,000; and Molly, $100,000. Paul is admitted to the partnership on July 1 with a 20% equity and invests $60,000. The balance in Caitlin's capital account immediately after Paul's admission is:

A) $120,000
B) $116,400
C) $123,600
D) $72,000
E) $60,000

Correct Answer:

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