By how much will the capital accounts of Lemon, Mango, and Nobb increase, respectively, due to the revaluation of the assets and the recognition of goodwill?
A) The capital accounts will increase by $50,000 each.
B) The capital accounts will increase by $60,000 each.
C) $36,000, $54,000, and $90,000
D) $40,000, $50,000, and $60,000
C
Explanation: C) The assets value will increase by $180,000 ($50,000 from inventory, $100,000 from land, and $30,000 from goodwill). Allocated on a 2:3:5 basis: $36,000 to Lemon, $54,000 to Mango, and $90,000 to Nobb.
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