Capital after the admission of pitts


King and Otto are partners who share profits and losses equally and have capital balances of $560,000 and $490,000, respectively. Pitts is admitted into the partnership by investing $490,000 for a 30% capital interest. The account balance of Otto, Capital after the admission of Pitts would be

a) $462,000.

b) $504,000.

c) $490,000.

d) $476,000.

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Accounting Basics: Capital after the admission of pitts
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