Question
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 230,000 Adams 190,000 Fergie 160,000 Gomez 140,000
The E.N.D. partnership has the following capital balances as of the end of the current year:
Pineda | $ | 230,000 |
Adams | 190,000 | |
Fergie | 160,000 | |
Gomez | 140,000 | |
Total capital | $ | 720,000 |
a. | Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $190,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? Pineda? Adams Gomez? 2)
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