Question
The E.N.D. partnership has the following end capital balances as the end of the current year Pineda $140,000 Adams $120,000 Fergie $110,000 Gomez`$100,000 A. Assume
The E.N.D. partnership has the following end capital balances as the end of the current year
Pineda $140,000
Adams $120,000
Fergie $110,000
Gomez`$100,000
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 $340,000based on the terms of the original agreement. If the bonus method is used, what is the remaining balance of the remaining three partners?
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Auditing A Practical Approach
Authors: Robyn Moroney
1st Canadian Edition
978-1118472972, 1118472977, 978-1742165943
