[The following information applies to the questions displayed below.]

Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debras capital is $190,000, Merinas capital is $152,000, and they share income in a ratio of 3:2, respectively.

4.

Required: Record Waynes admission for each of the following independent situations:

a. Wayne directly purchases half of Merinas investment in the partnership for $99,000.

5.

Required information

b. Wayne invests the amount needed to give him a one-third interest in the partnerships capital if no goodwill or bonus is recorded.

6.

Required information

c. Wayne invests $110,000 for a 25 percent interest. Goodwill is to be recorded.

7.

Required information

d. Debra and Merina agree that some of the inventory is obsolete. The inventory account is decreased before Wayne is admitted. Wayne invests $100,000 for a 25 percent interest.

8.

e. Wayne directly purchases a 25 percent interest by paying Debra $96,000 and Merina $56,000. The land account is increased before Wayne is admitted.

9.

Required information

f. Wayne invests $72,000 for a 20 percent interest in the total capital of $414,000.

10.

g. Wayne invests $105,000 for a 20 percent interest. Goodwill is to be recorded.