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:

a. Wayne directly purchases half of Merinas 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