chapter 16 type question beams advanced accounting 11th edition

9 4 5 6 7 8 4 9 5 Assets 6 7 Cash $100,000 8 Marketable Securities 240,000 9 Inventory 150,000 10 Land 160,000 11 Building - Net 800,000 12 13 Total Assets 1,450,000 14 15 16 17 Equities 18 19 Sam, Capital $850,000 20 Norm, Capital 450,000 21 Woody, Capital 150,000 22 23 Total Equities 1,450,000 24 25 26 The partners agree to admit Dianne for a one-tenth interest. The Fair Market value for the partnership land 27 is $360,000 and the Fair Market Value of the inventory is $300,000 28 29 Required: 30 31 1) Record the entry to revalue the partnership assets prior to the admission of Dianne 32 33 2) Calculate how much Dianne will have to invest to acquire a 10% interest 35 3) Assume the partnership assets are not revalued. If Dianne paid $400,000 in exchange for a 10% 36 interest in the partnership, what is the bonus that is allocated to each partner's capital account? 37 38 39 40 41 34