Question
The partners of Bentsen & Cole LLP had capital account balances of $45,000 and $25,000, respectively. They shared net income and losses in a 3:1
The partners of Bentsen & Cole LLP had capital account balances of $45,000 and $25,000, respectively. They shared net income and losses in a 3:1 ratio. Prepare journal entries to record the admission of Diaz to the limited liability partnership under the (1) bonus method, and (2) goodwill method for each of the following assumptions:
Diaz invested a single proprietorship with identifiable assets having a current fair value of $40,000 and liabilities having a current fair value of $10,000 for a 20% interest in the net assets of the partnership. Prior to admitting the new partner the old partners write up assets by $10,000.
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1 Bonus Method Assumption Diaz invested a single proprietorship with identifiable assets having a current fair value of 40000 and liabilities having a current fair value of 10000 for a 20 interest in ...Get Instant Access to Expert-Tailored Solutions
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Introduction to Governmental and Not for Profit Accounting
Authors: Martin Ives, Terry K. Patton, Suesan R. Patton
7th edition
9780132776073, 132776014, 978-0132776011
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