Question
James contributes cash of $70,000 and Joyce invests only $10,000. Joyce, however, is an accomplished graphic artist, a skill that is considered especially valuable to
James contributes cash of $70,000 and Joyce invests only $10,000. Joyce, however, is an accomplished graphic artist, a skill that is considered especially valuable to this. James and Joyce have contributed a total of $80,000 in identifiable assets to their partnerships and have decided on capital balance ratio as James : Joyce = 3:2. How much do we credit "James, Capital" if bonus method is used?
A) 48,000
B) 20,000
C) 32,000
D) 10,000
James contributes cash of $70,000 and Joyce invests only $10,000. Joyce, however, is an accomplished graphic artist, a skill that is considered especially valuable to this. James and Joyce have contributed a total of $80,000 in identifiable assets to their partnerships and have decided on capital balance ratio as James : Joyce = 3:2. How much do we debit "Goodwill" if goodwill method is used?
A) 36,667
B) 23,333
C) 20,000
D) 46,667
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fia Foundations Of Financial Accounting Ffa Interactive Text
Authors: BPP Learning Media
1st Edition
1509724176, 978-1509724178
