Question
Sora is to become partner in KH partnership by paying $63,000 in cash to the business. At present, the capital balance for Riku is $57,000,
Sora is to become partner in KH partnership by paying $63,000 in cash to the business. At present, the capital balance for Riku is $57,000, and for Kairi is $55,000. Riku and Kairi share profits on a 3:2 basis. Sora is acquiring 30% of the new partneship. A. If the goodwill method is applied, what will the three capital balances be following the payment by Sora? Kairi: ____________ Riku: ____________ Sora: ____________ B. If the bonus method is applied, what will the three capital balances be following the payment by Sora? Kairi: ___________ Riku: ___________ Sora: ___________
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