The Distance Plus partnership has the following capital balancesat the beginning of the current year:

  Tiger (50% of profits and losses) $ 85,000
  Phil(30%) 60,000
  Ernie (20%) 55,000

Each of the following questions should be viewedindependently

1) If Sergio invests $72,000 in cash in the business for a 25percent interest, what journal entry is recorded? Assume that thegoodwill method is used. (If no entry is required for atransaction/event, select “No journal entry required” in the firstaccount field.)