Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%,20% and 60% respectively. Richard decides to retire

image text in transcribed On November 30, capital balances are Richard $716000, Lagassi $596000 and Kelly $596000. The income ratios are 20%,20% and 60% respectively. Richard decides to retire from the partnership. In order for Lagassi and Kelly to have equal capital interests after the retirement of Richard, how much partnership cash would have to be paid to Richard for her partnership interest? Any amount paid to Richard will cause Lagassi and Kelly to still have equal capital balances. $636000.$716000. $0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting An International Introduction

Authors: David Alexander

2nd Edition

9780273685203

More Books

Students also viewed these Accounting questions

Question

How do books become world of wonder?

Answered: 1 week ago

Question

If ( A^2 - A + I = 0 ), then inverse of matrix ( A ) is?

Answered: 1 week ago