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The following is the current balance sheet for a local parthershlp of doctors: The following questions represent / ndepenclent situations: Required: a . E is

The following is the current balance sheet for a local parthershlp of doctors:
The following questions represent /ndepenclent situations:
Required:
a. E is going to Invest enough money in this partnership to recelve a 20 percent Interest. No goodwwill or bonus is to be recorded. How
much should E Invest?
b. E contributes $120,000 in cash to the business to recelve a 20 percent interest In the partnership. Goodwill is to be recorded.
Profits and losses have prevlously been split according to the following percentages: A,30 percent; B,10 percent; C,40 percent;
and D.20 percent. After E makes this Investment, what are the Individual capital balances?
c. Econtributes $70,000 in cash to the business to recelve a 20 percent interest in the parthership. Goodwill is to be recorded. The
four orlginal partners share all profits and losses equally. After E makes this Investment, what are the Individual capital balances?
d. E contributes $82,000 in cash to the business to recelve a 22 percent interest in the partnership. No goodwill or other asset
revaluation is to be recorded. Profits and losses have previously been spllt according to the following percentages: A,10 percent; B,
30 percent; C,20 percent; and D,40 percent. After E makes this Investment, what are the Individual capital balances?
e. C retires from the partnership and, as per the original partnership agreement, is to recelve cash equal to 130 percent of her final
capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the
withdrawal, what are the Indlvidual capital balances of the remaining partners?
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