In the GMP partnership (to which Elan seeks admittance), the capital balances of Mary, Gene, and Pat, who share income in the ratio of 6:3:1, are

1. Mary $ 254,400
2. Gene 127,200
3. Pat 42,400

Required:

a. If no goodwill or bonus is recorded, how much must Elan invest for a one-third interest?

b. Prepare journal entry for the admission of Elan if she invests $81,900 for a 20 percent interest and goodwill is recorded.

c. Prepare journal entry for the admission of Elan if she invests $202,000 for a 20 percent interest. Total capital will be $626,000; the partners use the bonus method.