Following is the current balance sheet for a local partnership of doctors:

The following questions represent independent situations:

E is going to invest enough money in this partnership to receive a 25 percent interest. No goodwill or bonus is to be recorded. How much should E invest?

E contributes $60,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances?

E contributes $54,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?

E contributes $86,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances?

C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 112 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners?

Cash and current assets Land Building and equipment (net) $ 57,000 Liabilities 290, 000 A, capital 203,000 B, capital C, capital , capital $ 88,000 68, 000 88,000 138,000 168, 000 $550, 000 Totals $550, 000 Totals