Question
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 290,000 Adams 250,000 Fergie 220,000 Gomez 200,000
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda $ 290,000 Adams 250,000 Fergie 220,000 Gomez 200,000 Total capital $ 960,000 a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $253,000 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 $325,000 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started