Abby and Bill are in partnership

sharing profits and losses equally. A new partner Cathy is admitted. Profits

will now be shared Abby 40%, Bill 40% and Cathy 20%. The capital balances

before Cathy was admitted were Abby $25,000 and Bill $25,000. There were no

goodwill and revaluation arising from the change in the partnership. Cathy is

to contribute capital in cash so that the capital balances of Abby, Bill and

Cathy is in proportion to the profit sharing ratio for Abby, Bill and Cathy.

How much Cathy’s cash capital contribution to the partnership?