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Question 11 pts The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing
Question 11 pts
The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing percentages at a given point in time:
| Partner | Capital balance | Profit/loss percentage |
| A | 300,000 | 20% |
| B | 200,000 | 30% |
| C | 300,000 | 50% |
| TOTAL | 800,000 | 100% |
D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.
What will be the credit to D's capital account assuming the bonus method is used?
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Question 21 pts
The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing percentages at a given point in time:
| Partner | Capital balance | Profit/loss percentage |
| A | 300,000 | 20% |
| B | 200,000 | 30% |
| C | 300,000 | 50% |
| TOTAL | 800,000 | 100% |
D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.
What will be the credit to D's capital account assuming the goodwill method is used?
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Question 31 pts
The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing percentages at a given point in time:
| Partner | Capital balance | Profit/loss percentage |
| A | 300,000 | 20% |
| B | 200,000 | 30% |
| C | 300,000 | 50% |
| TOTAL | 800,000 | 100% |
D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.
How much goodwill would be recorded assuming the goodwill method is used?
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Question 41 pts
The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing percentages at a given point in time:
| Partner | Capital balance | Profit/loss percentage |
| A | 300,000 | 20% |
| B | 200,000 | 30% |
| C | 300,000 | 50% |
| TOTAL | 800,000 | 100% |
D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.
What will be the credit to D's capital account assuming the goodwill method is used?
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Advanced Accounting
Authors: Paul M. Fischer, William J. Tayler, Rita H. Cheng
11th edition
538480289, 978-0538480284
