Frank and Harry are partners. Frank has a capital balance of $51,000 and Harry has a capital balance of $40,000. Bill contributes a building with a fair market value of $27,000 to the partnership for an ownership interest of 20%. Calculate Bill's capital in the new partnership.
A) $13,000
B) $27,000
C) $24,000
D) $23,600
D) $23,600
Explanation: Bill will get an ownership interest of 20% of ($51,000 + $40,000 + $27,000)
= 0.2 × $118,000 = $23,600
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