Lee and Stills are partners who share income in the ratio of 2:1 and who have capital balances of…

Lee and Stills are partners who share income in the ratio of 2:1 and who have capital balances of $65,000 and $35,000, respectively. If Morr, with the consent of Stills, acquired one-half of Lee’s interest for $40,000, for what amount would Morr’s capital account be credited?

A. $32,500

B. $40,000

C. $50,000

D. $72,500

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