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. Debras capital is $200,000, Merinas capital is $160,000, and they share income in a ratio of 3:2, respectively.

Required

Record Waynes admission for each of the following independent situations:

1. Wayne directly purchases half of Merinas investment in the partnership for $90,000.

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

3. Wayne invests $110,000 for a 25 percent interest. Goodwill is to be recorded.

4. Debra and Merina agree that some of the inventory is obsolete. The inventory account is decreased before Wayne is admitted. Wayne invests $100,000 for a 25 percent interest.

5. Page 805Wayne directly purchases a 25 percent interest by paying Debra $80,000 and Merina $60,000. The land account is increased before Wayne is admitted.

6. Wayne invests $80,000 for a 20 percent interest in the total capital of $440,000.

7. Wayne invests $100,000 for a 20 percent interest. Goodwill is to be recorded.