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Andy, Belinda, and Chris formed a partnership on 1/1/2021. Andy contributed $35152 and is entitled to 25% of capital and 40% of profits and losses.
Andy, Belinda, and Chris formed a partnership on 1/1/2021. Andy contributed $35152 and is entitled to 25% of capital and 40% of profits and losses. Belinda contributed $23901 and is entitled to 30% of capital and 35% of profits and losses. Chris contributed $68986 and is entitled to 45% of capital and 25% of profits and losses.
1.Based on the bonus method, how much capital should Belinda receive at partnership formation?
2.Based on the goodwill method, what will Andy's initial capital position be?
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