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 total goodwill approach is used, goodwill is recognized in the amount of:
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Will You Be My Internal Audit Manager
Authors: Benito Gross
1st Edition
B09774C8CK, 979-8521636563
