Response to the following problem:
Adam Tse is admitted to a partnership. Prior to his admission, the partnership books show Sean Graham's capital balance at $100,000 and Kelly Ott's capital balance at $60,000. Compute each partner's equity on the books of the new partnership under the following plans:
a. Tse pays $90,000 for Ott's equity. Tse's payment goes directly to Ott.
b. Tse invests $40,000 to acquire a 1/5 interest in the partnership.
c. Tse invests $60,000 to acquire a 1/5 interest in the partnership.