he E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 150,000 130,000 120,000 110,000 $ 510,000 answer each of the following independent questions: . Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $160,000 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?
he E.N.D. partnership has the following capital balances as of the end of the current year: Pineda Adams Fergie Gomez Total capital $ 150,000 130,000 120,000 110,000 $ 510,000 answer each of the following independent questions: . Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $160,000 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rakesh
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
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 $160,000 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 $285,000 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.
$ 150,000
130,000
120,000
110,000
$ 510,000
X Answer is complete but not entirely correct.
Capital
Balance
b.
Pineda
Adams
Gomez
Adams
Fergie
Gomez
$
$
$
$
62,500✔
$ 75,000 ✓
$ 87,500
150,000 X
67,500 X
22,500 X
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