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/webapps/assessment/t ake/launchjsptcourse.assessment ids 310201 1Rcourse.id-149

ID: 2543212 • Letter: #

Question

/webapps/assessment/t ake/launchjsptcourse.assessment ids 310201 1Rcourse.id-149355 18content ide 6 310201, 1course.id-. 149355, 1&xcontent; id 6119841, 1stepnu search. QUESTION 11 Questor, is worth 8 total points. Attach work to question #12 Zinedine Zidane and Englobort Humpordinck have been in business togethor for several years. They wish to add a 3rd partner Takeru Kobayash to the company, Betore adding Kobayash the company has total eguity of $700.000 of which Zidane has $490,000 and Humpordinck has $210,000 the businoss for $350,000 Zidane and Humperdinck will distrbuto the addibonal paid in capital trom Kobayashi proportionauly their prior capital. How much capital does Zinodine Zidane have ator addino Takeni Kobayash? O $588,000 O $637,000 O$686,000 O $735,000

Explanation / Answer

capital contributed by Kobayashi = $350000

20% of business (700000*20%) = $ 140000

Additional paid in capital = $ 210000

Zinedine's part in additional capital = 210000 *490000/700000

= $ 147000

Zinedine's total capital after including Kobayshi's additional paid in capital = 490000 + 147000

= $ 637000

so, option (b) $ 637000 is correct.