Question
ABC Partnership has the following capital balances and profit and loss percentages. A (40%)$100,000 B (30%)$200,000 C(30%)$300,000 D will pay a total of $200,000 to
ABC Partnership has the following capital balances and profit and loss percentages.
A (40%)$100,000
B (30%)$200,000
C(30%)$300,000
D will pay a total of $200,000 to the three partners in a privately negotiated transaction to acquire a 25% ownership interest. The goodwill method is to be used.
a.Prepare the journal entry (or entries) required by the ABC partnership.
b.What is balance in B's capital account after the admittance of D.
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Essentials Of Forensic Accounting
Authors: Michael A Crain, William S Hopwood,
1st Edition
1941651100, 978-1941651100
