Question
Following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 85,000 Liabilities $ 84,000 Land 244,000 A, capital
Following is the current balance sheet for a local partnership of doctors:
Cash and current assets $ 85,000
Liabilities $ 84,000
Land 244,000
A, capital 64,000
Building and equipment (net) 201,000
B, capital 84,000
C, capital 134,000
D, capital 164,000
- E contributes $120,000 in cash to the business to receive a 20 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?
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