QUESTION 33 Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership. Required: Determine the amount paid to Colter under each of the following cases: (1) $50,000 is debited to Agler capital account; the bonus approach is used. (2) Goodwill of $60,000 is recorded; the partial goodwill approach is used. (3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.

QUESTION 33 Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership. Required: Determine the amount paid to Colter under each of the following cases: (1) $50,000 is debited to Agler capital account; the bonus approach is used. (2) Goodwill of $60,000 is recorded; the partial goodwill approach is used. (3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PB: The partnership of Magda and Sue shares profits and losses in a 50:50 ratio after Mary receives a...

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