Question
Nunes, Orta and Paulo are partners providing engineering services. Relevant data regarding income-sharing relationships and capital balances are as follows: Partner Capital Balance Income Share
Nunes, Orta and Paulo are partners providing engineering services. Relevant data regarding income-sharing relationships and capital balances are as follows:
| Partner | Capital Balance | Income Share |
| Nunes | $ 250,000 | 20% |
| Orta | 180,000 | 30% |
| Paulo | 150,000 | 50% |
| Totals | $ 580,000 | 100% |
Nunes retires and receives $300,000 in cash from the partnership. Partnership net assets are recorded at amounts approximating fair value. If the partial goodwill approach is used, goodwill is recognized in the amount of:
| A. | $ 50,000 | |
| B. | $250,000 | |
| C. | $100,000 | |
| D. | $ 10,000 |
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Auditing Local Union Financial Records A Guide For Local Union Trustees
Authors: John Lund
1st Edition
0875461948, 978-0875461946
