Question
The Cas, Don, and Ear partnership balance sheet and profit and loss percentages at June 30, 2016, are summarized as follows: Assets $500,000 Cas capital
The Cas, Don, and Ear partnership balance sheet and profit and loss percentages at June 30, 2016, are summarized as follows:
| Assets | $500,000 | Cas capital (30%) | $140,000 |
|
|
| Don capital (30%) | 175,000 |
|
| Ear capital (40%) | 185,000 | |
|
| $500,000 |
| $500,000 |
On July 1, 2016, the partners agree that Cas is to retire immediately and receive $161,000 for her partnership interest.
Required
Prepare journal entries to illustrate three possible methods of accounting for the retirement of Cas.
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How To Beat The IRS At Its Own Game Strategies To Avoid And Fight An Audit
Authors: Amir D Aczel
1st Edition
1568580487, 978-1568580487
