Description of this paper

Adam Alvin is admitted to a partnership. Prior to...

Description

Solution


Question

Adam Alvin is admitted to a partnership. Prior to his admission, the partnership books show Sean Theodore's capital balance at $80,000 and Kelly Simon's capital balance at $48,000. Compute each partner's equity on the books of the new partnership under the following plans: A. Alvin pays $72,000 for Simon's equity. Alvin's payment goes directly to Simon B. Alvin invests $32,000 to acquire a 1/5 interest in the partnership C. Alvin invests $52,000 to acquire a 1/5 interest in the partnership.

 

Paper#4635 | Written in 18-Jul-2015

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