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? |
| Capital Balance | |
| Pineda | $ |
| Adams | $ |
| Gomez | $ |
| b. | Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $280,000 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 answers to the nearest dollar amounts.) |
| Capital Balance | |
| Adams | $ |
| Fergie | $ |
| Gomez | $ |
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Auditing Diversity In Library Collections
Authors: Rosalind Washington, Sarah Voels
1st Edition
1440878749, 978-1440878749
