Question
Partner A Partner B Partner C Capital Balances $50,000 $60,000 $70,000 Profit and Loss Percent 60% 30% 10% Percent interest in Capital 50% 40% 10%
| Partner A | Partner B | Partner C | |
| Capital Balances | $50,000 | $60,000 | $70,000 |
| Profit and Loss Percent | 60% | 30% | 10% |
| Percent interest in Capital | 50% | 40% | 10% |
Assume Partner A withdraws from the partnership and C uses personal funds to purchase As interest at its current fair market value of $56,000. If the price paid by C is not used to impute the value of the entity, the transaction would be recorded as follows:
| a. | Credit C, capital for $56,000 | |
| b. | Debit A, capital for $50,000 | |
| c. | Credit A, capital for $56,000 | |
| d. | Debit C, capital for $50,000 |
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Horngrens Financial And Managerial Accounting The Managerial Chapters And The Financial Chapters Plus Pearson Mylab Accounting With Pearson Global Edition
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
6th Global Edition
1292270756, 978-1292270753
