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What is the solution to part c of this problem? Following is the current balance sheet for a local partnership of doctors: Cash and current
What is the solution to part "c" of this problem?
Following is the current balance sheet for a local partnership of doctors:
| Cash and current assets | $ | 30,000 | Liabilities | $ | 50,000 |
| Land | 170,000 | A, capital | 30,000 | ||
| Building and equipment (net) | 160,000 | B, capital | 50,000 | ||
| C, capital | 100,000 | ||||
| D, capital | 130,000 | ||||
| Totals | $ | 360,000 | Totals | $ | 360,000 |
| c. E contributes $32,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances? |
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