HW$6$ Ch $131415$ Bankruptcy Reorganization and Partn

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$10$

The E$.$N$.$D$.$ partnership has the following capital balances as of the end of the current year:

$2\mathrm{.}58$

Pineda

Adams

Fergie

Gomez

Total capital

$$130,000$

$110,000$

$100,000$

$100,000$

$90,000$

$$430,000$

Answer each of the following independent questions:

Required:

a$.$ Assume that the partners share profits and losses $3$:$3$:$2$:$2,$ respectively. Fergie retires and is paid $$125,000$ based the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

b$.$ Assume that the partners share profits and losses $4$:$3$:$2$:$1,$ respectively. Pineda retires and is paid $$325,000$ based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.

$\backslash$table$[[,\backslash$table$[[$Capital$],[$Balance$]]],[$a$.$ Pineda,$],[$Adams$,],[$Gomez$,],[$b$.$ Adams,$],[$Fergie$,],[$Gomez$,]]$