Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 330,000 Adams 290,000 Fergie 260,000 Gomez 240,000

The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 330,000 Adams 290,000 Fergie 260,000 Gomez 240,000 Total capital $ 1,120,000 a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $296,000 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 4:3:2:1, respectively. Pineda retires and is paid $350,000 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.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting

Authors: Donna Kay

15th Edition

0077826841, 9780077826840

More Books

Students also viewed these Accounting questions

Question

Technology

Answered: 1 week ago

Question

Population

Answered: 1 week ago

Question

The feeling of boredom.

Answered: 1 week ago