Final answer:
In this case, Mark's capital balance after Neumark's admittance is $107,667.
None of the given options is correct
Step-by-step explanation:
To find Mark's capital balance after Neumark's admittance, we need to calculate the new capital balances for each partner.
Initially, Mark's capital balance is $144,000 and Landry's capital balance is $112,000. The ratio of their income and losses is 3:2.
Neumark is admitted as a partner with a one-third capital interest and invests $107,000 in the partnership.
To calculate the new capital balances, we can use the following steps:
1. Determine the total capital after Neumark's investment:
Total capital = Mark's capital + Landry's capital + Neumark's investment
= $144,000 + $112,000 + $107,000
= $363,000
2. Calculate the share of each partner based on the ratio of their income and losses:
Mark's share = (Mark's capital / Total capital) * (1/2) * Total capital
= ($144,000 / $363,000) * (1/2) * $363,000
= $72,000
Landry's share = (Landry's capital / Total capital) * (1/2) * Total capital
= ($112,000 / $363,000) * (1/2) * $363,000
= $56,000
3. Calculate Neumark's share:
Neumark's share = Neumark's investment * (1/3)
= $107,000 * (1/3)
= $35,667
4. Calculate Mark's new capital balance:
Mark's new capital balance = Mark's share + Neumark's share
= $72,000 + $35,667
= $107,667
Therefore, Mark's capital balance after Neumark's admittance is $107,667.
None of the given options is correct