Answer:
$94,080
Explanation:
Data provided in the question:
The partnership’s capital balances
Caitlin= $128,000
Chris = $88,000
Molly = $108,000
Paul's equity = 20%
Amount invested by the Paul = $68,000
Now,
The total value of the capital = ∑ ( capital balances of each partner )
= $128,000 + $88,000 + $108,000 + $68,000
= $392,000
Therefore,
The balance in Paul's capital account immediately after Paul’s admission
= 20% of $392,000
= $78,400
Thus,
Balance in capital account for Caitlin, Chris, and Molly
= total value of the capital - Balance in Paul's capital
= $392,000 - $78,400
= $313,600
also,
Share of Caitlin = [tex]\frac{3}{3+4+3}[/tex] = 0.3
hence,
balance in Caitlin’s capital account immediately after Paul’s admission
= 0.3 × $313,600
= $94,080
