Question
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 140,000 Adams 120,000 Fergie 110,000 Gomez 100,000
| The E.N.D. partnership has the following capital balances as of the end of the current year: |
| Pineda | $ | 140,000 |
| Adams | 120,000 | |
| Fergie | 110,000 | |
| Gomez | 100,000 | |
| Total capital | $ | 470,000 |
| a. | Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $140,000 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 $340,000 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.
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Introduction To Government And Not For Profit Accounting
Authors: Martin Ives, Joseph R. Razek, Gordon A. Hosch
5th Edition
0130464147, 978-0130464149
