Details of this Paper

If the bonus method is used, what is the capital balance of the remaining three partners

Description

solution


Question

The E.N.D. partnership has the following capital balances as of the end of the current year;Pineda $ 330,000;Adams 290,000;Fergie 260,000;Gomez 240,000;Total capital $ 1,120,000;a.;Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $296,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?;b.;Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $350,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

 

Paper#20502 | Written in 18-Jul-2015

Price : $42
SiteLock