PA2. LO 15.4 Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances prior to Tammy's admission are $50,000 each. Prepare a schedule showing how the bonus should be divided among the three, assuming the profit or loss agreement will be 1:3 once Tammy has been admitted and her contribution is: A S20,000 B. $80,000 c. $50,000 In addition, show the resulting journal entries to each of the three partners' capital accounts. Solution A Total capital of Arun and Margot Investment by new partner, Tammy Total capital of new partnership Tammy's capital credit Total bonus to Tammy Allocation of bonus to Tammy: Arun Margot Journal entry: Cash Arun, Capital Margot, Capital Tammy, Capital B. Total capital of Arun and Margot Investment by new partner. Tammy Total capital of new partnership Tammy's capital credit Total bonus to Arun and Margot Allocation of bonus to Arun and Margot: Arun Margot Journal entry: Cash Arun, Capital Margot, Capital Tammy. Capital C. Total capital of Arun and Margot Investment by new partner, Tammy Total capital of new partnership Tammy's capital credit Total bonus to Arun and Margot Journal entry: Cash Tummy, Capital PA3. LO 15.5 When a partnership is liquidated, any gains or losses realized by the sale of noncash assets are allocated to the partners based on their income sharing ratio. Why? Solution