Question
Clayton is attempting to consider the price to be paid for a partnership interest. The exiting partnership is characterized as follows: Partnership Total Asset Book
Clayton is attempting to consider the price to be paid for a partnership interest. The exiting partnership is characterized as follows:
| Partnership |
Total Asset |
|
Book Value | 800,000 |
Fair market value excluding goodwill | 850,000 |
Liabilities |
|
Accounts payable | 300,000 |
Bank loans | 200,000 |
Other liabilities | 58,000 |
Interest to be acquired by Clayton |
|
In capital | 20% |
In profit and losses | 25% |
Determine the amount of consideration that Clayton should have to convey in order to acquire 20% of interest in capital and 25% of interest in profits and losses.
Select one:
a. 73,000X
b. 48,000
c. 34,500
d. 60,500
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