Question
Alex, Barnes, Caleb and Davis have the following partnership business: Assets Liabilities and equities Cash $55,000 Liabilities $40,000 Current assets 30,000 Alex, capital 60,000 Land
Alex, Barnes, Caleb and Davis have the following partnership business:
Assets Liabilities and equities Cash $55,000 Liabilities $40,000 Current assets 30,000 Alex, capital 60,000 Land 205,000 Barnes, capital 70,000 Building and Equip't 110,000 Caleb, capital 90,000 - Davis, capital 140,000 Total assets $400,000 Total Liab. and Eq's $400,000 The partners share profits and losses equally.
a. Eldridge is added to the partnership after contributing $90,000?
b. receives a 20% interest in the partnership. Eldridge's $100,000 investment is considered 20% of the new business's value, so goodwill may need to be recorded. (Eldridge's capital balance will be exactly $100,000.)
c. Eidridge is added to the partnership and receives 20% of each partner's interest in the business after paying $20,000 the four partners. No goodwill is recorded.
d. Caleb retires and has been paid 120% of her capital balance according to the terms of the original partnership agreement. The bonus method is used.
please help with any parts.
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