Settlement of equity

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After allocating net income and closing the partners' drawing accounts, assume the partners' capital accounts have credit balances as follows: Adams $20,000; Bell $30,000; and Cooley $45,000. Partners share profits and losses as follows: Adams 20%; Bell 30%; and Cooley 50%. If Cooley retires and withdraws $40,000 in settlement of her equity and settlements are allocated according to capital interests, the amount entered in Adams's capital account would be a ??

Reference no: EM13155156

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