Lloyd and Ellis admit Magean to their partnership, with Magean paying $ 38,000 more than the book value of her equity in the new business. Lloyd and Ellis have no formal profit-and-loss-sharing agreement. What effect does admitting Magean to the partnership have on the capital balances of Lloyd and Ellis?
Credit the Lloyd and Ellis capital accounts for $ 38,000 each.B.Debit the Lloyd and Ellis capital accounts for $ 19,000 each.C.Credit the Lloyd and Ellis capital accounts for $ 19,000 each.D.Cannot be determined because there's no profit-and-loss sharing ratio.