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Thank you 0 Dexter, Edwards and French are partners with the following capital balance and profit and loss sharing percentages: Dexter $200,000 Edwards 120,000 French60,000
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0 Dexter, Edwards and French are partners with the following capital balance and profit and loss sharing percentages: Dexter $200,000 Edwards 120,000 French60,000 (70%) (20%) (10%) It is agreed that Edwards will withdraw from the partnership and receive his capital balance plus his share of any increase in the fair value over book value of the underlying assets of the partnership. Assume the total increase in fair value is $100,000. a. if the bonus method is used what is the balance in Dexter's capital account after the withdrawal of Edwards? b. if the goodwill method is used, what is balance of French's capital account after the withdrawal of EdwardsStep by Step Solution
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