Question
The following balance sheet information is for the partnership of Abele, Boule, and Cayman: Cash $ 210,000 Liabilities $ 510,000 Other assets 1,500,000 Abele, Capital
The following balance sheet information is for the partnership of Abele, Boule, and Cayman:
| Cash | $ 210,000 | Liabilities | $ 510,000 |
| Other assets | 1,500,000 | Abele, Capital (40%) | 300,000 |
|
|
| Boule, Capital (40%) | 480,000 |
|
|
| Cayman, Capital (20%) | 420,000 |
|
| $1,710,000 |
| $1,710,000 |
Figures shown parenthetically reflect agreed profit and loss sharing percentages.
If the assets are fairly valued on the above balance sheet and the partnership wishes to admit Dann as a new 1/5 partner without recording goodwill or bonus, Dann should invest cash or other assets of
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Computer Accounting
Authors: Donna Kay
14th Edition
007762453X, 9780077624538
