Following is the current balance sheet for a local partnership of doctors Cash and current assets $ 67,000 Liabilities $ 74,000 Land 232,000 A, capital 54,000 Building and equipment (net) 181,000 B, capital 74,000 C, capital 124,000 D, capital 154,000 Totals $ 480,000 Totals $ 480,000 The following questions represent independent situations a E is going to invest enough money in this partnership to receive a 20 percent interest No goodwill or bonus is to be recorded How much should E invest E investment $ b E contributes $50,000 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 Individuals Capital Balances A $ B $ C $ D $ E $ c E contributes $38,000 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 Individuals Capital Balances A $ B $ C $ D $ E $ d E contributes $72,000 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 Individuals Capital Balances A $ B $ C $ D $ E $ e C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 130 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 Individuals Capital Balances A $ B $ D $

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Following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 67,000 Liabilities $ 74,000 Land 232,000 A, capital

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


Cash and current assets	$	67,000	Liabilities	$	74,000
Land		232,000	A, capital		54,000
Building and equipment (net)		181,000	B, capital		74,000
			C, capital		124,000
			D, capital		154,000

Totals	$	480,000	Totals	$	480,000

The following questions represent independent situations:

a.	E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest?

E investment

E contributes $50,000 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?

Individuals	Capital Balances
A	$
B	$
C	$
D	$
E	$

c.	E contributes $38,000 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?

Individuals	Capital Balances
A	$
B	$
C	$
D	$
E	$

E contributes $72,000 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?

Individuals	Capital Balances
A	$
B	$
C	$
D	$
E	$

C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 130 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?