A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabili ties $240,000; Nixon, Capital
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A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabili¬ ties $240,000; Nixon, Capital (50% of profits and losses) $200,000; Hoover, Capital (20%) $120,000; and Polk, Capital (30%) $90,000. Each of the following questions should be viewed as an independent situation: LO3
a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be rec¬ ognized. What are the capital accounts thereafter?
b. Grant invests $ 100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?
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Related Book For
Advanced Accounting
ISBN: 9780073379456
9th Edition
Authors: Joe Ben Hoyle, Timothy S. Doupnik, Thomas F. Schaefer, Oe Ben Hoyle
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