Multiple Choice
Sam Sung and Mitchell Vaughn are partners, and each has a capital balance of $60,000. To gain admission to the partnership, Amanda Scott pays $42,000 directly to Vaughn for one-half of his equity. Scott's capital account will reflect an equity interest of:
A) $60,000.
B) $30,000.
C) $42,000.
D) $40,000.
Correct Answer:
Verified
Correct Answer:
Verified
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