. Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra's capital is $200,000, Merina's capital is $160,000, and they share income in a ratio of 3:2, respectively.

Required:

Record Wayne's admission for each of the following independent situations:

a. Wayne directly purchases half of Merina's investment in the partnership.

b. Wayne invests the amount needed to give him a one-third interest in the capital of the partnership if no goodwill or bonus is recorded.

c. Wayne invests $110,000 for a one-fourth interest if Goodwill is to be recorded.

Cash 110,000

Goodwill 10,000

Wayne, Capital 120,000

$120,000 = $480,000 total resulting capital x 1/4