If TLM receives a 20

If TLM receives a 20 - account would be credited for...

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If TLM receives a 20% ownership interest in the partnership for his $30,000 investment, the amount  of his initial capital account balance is calculated by adding the $30,000 to the total partnership's  capital before his investment and multiplying by 20%, TLM's ownership interest. TLM's capital 
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Unformatted text preview: account would be credited for $30,000 in this case. Existing Capital MJM, Capital $ 70,000 EAM, Capital 50,000 Total Existing Capital 120,000 Add: TLM Investment 30,000 New Capital Balance 150,000 TLM Ownership % × 20% TLM, Capital $ 30,000...
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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