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I need an answer please Problem 1 ( 35 points) Bush anotCarter are partners in an automobile repair business. Their respective capital balances are $425,000
I need an answer please
Problem 1 ( 35 points) Bush anotCarter are partners in an automobile repair business. Their respective capital balances are $425,000 and $275,000, and they share profits in a 3:1 ratio. Because of growth in their repair business, they decide to admit a new partner. Gore is admitted to the partnership, after which Bush, Carter and Gore agree to share profits in a 3:1:2 ratio. Required: Prepare the necessary journal entries to record the admission of Gore in each of the following independent situations: A. Gore purchases 20% of the capital interest of Bush. Bush receives $100,000 directly from Gore. B. Gore invests $200,000 for a one-fitth capital interest. The bonus method is to be used. C. Gore invests $200,000 for a 30% capital interest. The goodwill method is to be used Step by Step Solution
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