Rex and Sandy are partners. Rex has a capital balance of $370,000 and Sandy has a capital balance of $280,000. Marcus contributes a building with a fair market value of $220,000 in order to acquire an interest in the partnership. What is Marcus's partnership share after he makes the investment?(Assume no bonus to any partner. Round the percentage to one decimal place.)
A) 25.3%
B) 32.2%
C) 42.5%
D) 17.2%
A) 25.3%
Explanation: Marcus's share in the partnership after the investment
= $220,000 / ($370,000 + $280,000 + $220,000) = $220,000 / $870,000 = 25.3%
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