Clinton and Schultz are equal partners in DEMO partnership and they have the following balance sheet:

assets $500,000

Liabilities $300,000

Clinton Capital 150,000

Schultz capital 50,000

They decide to bring in a new partner Sanders who pays $500,000 to be an equal partner

REQUIRED:

A) make the journal entry the partnership makes if they use the bonus method

B) make the journal entry the partneship makes if they use the goodwill method

Instead of giving the $500,000 to the partnership, Sanders gave $250,000 to each Clinton and Schultz

REQUIRED:

C) make the journal entry the partnership makes if they use the bonus method

D) make the journal entry the partnership makes if they use the goodwill method