Question
Quincy has decided to retire from the partnership of Quincy, Robert, and Sam. The partnership will pay Quincy $400,000. Total partnership capital should be revalued
Quincy has decided to retire from the partnership of Quincy, Robert, and Sam. The partnership will pay Quincy $400,000. Total partnership capital should be revalued based on the excess payment to Quincy. (Assume the book values of the assets listed below equals fair values.) A summary balance sheet for the Quincy, Robert, and Sam partnership appears below. Quincy, Robert, and Sam share profits and losses in a ratio of 1:1:3, respectively.
Assets
Cash $ 150,000
Marketable securities 76,000
Inventory 164,000
Land 300,000
Building-net 510,000
Total assets $1,200,000
Equities
Quincy, capital 320,000
Robert, capital 280,000
Sam, capital 600,000
Total equities $1,200,000
Question: What goodwill will be recorded?
| A. | $ 80,000 | |
| B. | $400,000 | |
| C. | $320,000 | |
| D. | $240,000 |
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International Auditing Standards In The United States Comparing And Understanding Standards For ISA And PCAOB
Authors: Asokan Anandarajan, Gary Kleinman
2nd Edition
1953349323, 9781953349323
