The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 300,000 270,000 260,000 250,000 $1,080,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $297,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $345,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams Gomez b. Adams Fergie Gomez Capital Balance
The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 300,000 270,000 260,000 250,000 $1,080,000 Answer each of the following independent questions: a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $297,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners? b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $345,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.) a. Pineda Adams Gomez b. Adams Fergie Gomez Capital Balance
Chapter21: Partnerships
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:The E.N.D. partnership has the following capital balances as of the end of the current year:
Pineda
Adams
Fergie
Gomez
Total capital
$ 300,000
270,000
260,000
250,000
$1,080,000
Answer each of the following independent questions:
a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $297,000 based on the terms of
the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?
b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $345,000 based on the terms of
the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do
not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)
a. Pineda
Adams
Gomez
b. Adams
Fergie
Gomez
Capital
Balance
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