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The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 280,000 250,000
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 280,000 250,000 240,000 230,000 $1,000,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3.2.2, respectively. Fergie retires and is paid $289,000 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? b. Assume that the partners share profits and losses 43:2:1, respectively. Pineda retires and is paid $300,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Answer is complete but not entirely correct. Capital Balance Pineda $ 353,500 Adams $ 323,500 Gomez $ 279,000 Adams $ 279,000 Fergie S 45,667 X Gomez $ 558,000 b
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