Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bava and Char are partners in BC Enterprises, providing systems support to small companies. The partners share income in a 3:1 ratio. The partnership balance
Bava and Char are partners in BC Enterprises, providing systems support to small companies. The partners share income in a 3:1 ratio. The partnership balance sheet is as follows: Assets Liabilities Cash $ 65,000 Accounts payable $ 40,000 Supplies 45,000 Notes payable 175.000 Facilities, net 460,000 Total liabilities 215.000 Capital CapitalBava 200,000 Capital Char 155.000 Total capital 355.000 Total assets $570.000 Total liabilities and capital $570,000 ali nofludiuzib 020 Dey is to be admitted as a new partner, investing $20,000 in cash and equipment with a fair value of $80,000 in the partnership, and receiving a 10 percent interest in capital and income. Appraisal of partnership net assets reveals that current facilities have a fair value of $500,000 and there are unreported identifiable intangible assets of $75,000. all the Required Prepare the partnership balance sheet following Dey's admission to the partnership, using: a. The bonus method b. The goodwill method
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started