Avery and Bert are partners who share profits in a ratio of 2:1 and have capital balances of $75,000 and $150,000, respectively. The partners agree to admit Carmen to the partnership. Carmen invests $75,000 for a 35 percent interest in the partnership. The new total capital balance after admitting Carmen is $300,000. The entry to record the admission of Carmen to the partnership is:
A) Cash 75,000 Carmen, Capital 75,000
B) Cash 105,000 Carmen, Capital 105,000
C) Cash 75,000 Avery, Capital 20,000Bert, Capital 10,000Carmen, Capital 105,000
D) Cash 105,000 Carmen, Capital 75,000Avery, Capital 20,000Bert, Capital 10,000
C
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Answer the following statement true (T) or false (F)