Sameer, Abed and Naveen have a partnership. Their capital balances are S360,000, $520,000 and $600,000, respectively....
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Sameer, Abed and Naveen have a partnership. Their capital balances are S360,000, $520,000 and $600,000, respectively. They share profits and losses 25%, 35% and 40%, respectively. Rana wants to become a partner with a 10 percent share in partnership capital with a $240,000 cash contribution to the partnership. The fair market value for the partner is equal to book values Required: 1- Calculate Sameer, Abed, Naveen and Rana ending capital balances under the Bonus Method and Goodwill Method. 2- Journalize the required entries under both methods Sameer, Abed and Naveen have a partnership. Their capital balances are S360,000, $520,000 and $600,000, respectively. They share profits and losses 25%, 35% and 40%, respectively. Rana wants to become a partner with a 10 percent share in partnership capital with a $240,000 cash contribution to the partnership. The fair market value for the partner is equal to book values Required: 1- Calculate Sameer, Abed, Naveen and Rana ending capital balances under the Bonus Method and Goodwill Method. 2- Journalize the required entries under both methods
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Ans Given Sameer Abed Naveen Total Capital 360000 520000 600000 1480000 Share ratio 25 35 40 100 New ... View the full answer
Related Book For
Canadian Income Taxation planning and decision making
ISBN: 9781259094330
17th edition 2014-2015 version
Authors: Joan Kitunen, William Buckwold
Posted Date:
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