Question
In the LMK partnership, Luiss capital is $40,600, Martys is $51,800, and Karls is $30,800. They share income in a 4:1:1 ratio, respectively. Karl is
| In the LMK partnership, Luiss capital is $40,600, Martys is $51,800, and Karls is $30,800. They share income in a 4:1:1 ratio, respectively. Karl is retiring from the partnership. |
| Required: |
| Prepare journal entries to record Karls withdrawal according to each of the following independent assumptions: |
| a. | Karl is paid $39,000, and no goodwill is recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| b. | Karl is paid $43,000, and only his share of the goodwill is recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
| c. | Karl is paid $35,600, and all implied goodwill is recorded. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) |
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