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Jenny, Daniel, and Mason have the following capital balances: $ 3 0 , 0 0 0 , $ 5 0 , 0 0 0 and
Jenny, Daniel, and Mason have the following capital balances: $$ and $ respectively. The partners share profits and losses and respectively. Consider the following five independent transactions:
a Daniel retires and is paid $ based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of Mason after the transaction?
b Daniel retires and is paid $ based on an independent appraisal of the business. If the goodwill method is used, what is the capital balance of Mason after the transaction?
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c The three partners agree to admit Lisa for a interest. Lisa contributes $ to the partnership. If the bonus method is used, what is the capital balance of Mason after the transaction?
Answer:
d The three partners agree to admit Lisa for a interest. Lisa contributes $ to the partnership. If the bonus method is used, what is the capital balance of Mason after the transaction?
Answer:
e The three partners agree to admit Lisa for a interest. Lisa contributes $ to the partnership. If the goodwill method is used, what is the goodwill being recorded?
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