Question
2. The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 Total $425,000 The partners' income sharing ratio is:
2. The capital balances of the DEF Partnership are as follows:
Danielson $180,000
Eklund 95,000
Forsberg 150,000
Total $425,000
The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Assume the partnerships identifiable net assets are carried at amounts approximating fair value.
Case A:
Assume Gustafson joins the partnership by contributing $125,000 to the partnership for
a 20% interest in partnership capital.
Case B:
Now assume Gustafson paid $90,000 for a 20% interest in partnership capital.
Instruction: For each case (each case is independent), please use both Bonus method and Goodwill method to
analyze the problem. Prepare the Statement of Partners Capital Balances, as well as the related journals prepared
for the partnership.
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