In the RST partnership, Ron's capital is $80,000, Stella's is $75,000, and Tiffany's is $50,000. They share income in a 3:2:1 ratio, respectively. Tiffany is retiring from the partnership. Each of the following questions is independent of the others.

Required information

Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?

$0

$6,000

$30,000

$36,000

Required information

Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. In the journal entry to record Tiffany's withdrawal:

Tiffany, Capital will be credited for $60,000.

Ron, Capital will be debited for $5,000.

Stella, Capital will be debited for $4,000.

Cash will be debited for $60,000.

Required information

Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. In the journal entry to record Tiffany's withdrawal:

Tiffany, Capital will be credited for $60,000.

Ron, Capital will be debited for $5,000.

Stella, Capital will be debited for $4,000.

Cash will be debited for $60,000.

Required information

Refer to the above information. Tiffany is paid $60,000, and no goodwill is recorded. What is the Ron's capital balance after Tiffany withdraws from the partnership?

$74,000

$71,000

$75,000

$86,000

Required information

Refer to the above information. Tiffany is paid $56,000, and all implied goodwill is recorded. What is the total amount of goodwill recorded?

$0

$6,000

$30,000

$36,000