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Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio. The partnership's capital balances are Wallace, $75,920; Simpson, $87,600; and Prince, $70,080. Royal is admitted to the partnership on July 1 with a 20% equity and invests $58,400. The partnership would record the admission of Royal into the partnership as:
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Wallace, Simpson, and Prince are partners and share income and losses in a 2:6:2 ratio. The partners...
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