A partnership has the following capital balances: Carpenter (40% of gains and losses) . . . .

Question:

A has the following capital balances:
Carpenter (40% of gains and losses) . . . . . . . . . . . $140,000
Dane (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Elkhart (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000
Krystal is going to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each. is to be recorded. What is Dane’s capital balance after the transaction?
a. $210,000.
b. $255,000.
c. $340,000.
d. $352,000.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...