Question
1) Three people are in a partnership together and have a combined capital balance of $1,000,000. A new partner, A, pays the partnership $2,000,000 directly
1) Three people are in a partnership together and have a combined capital balance of $1,000,000. A new partner, "A", pays the partnership $2,000,000 directly for a 50% interest in the new partnership. The partnership chooses the bonus method for admitting a new partner and applies the bonus to the existing partners, and the original partners have equal profit shares. Based on this information:
How much will be debited or credited to the existing partners' capital accounts in total?
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
15th Edition
978-0256168723, 77388720, 256168725, 9780077388720, 978-007337960
