Xion and Boy are allies with $50,000,000 and $60,000,000 in capital balances, respectively. Theyreceived Andre for a 1/3 ownership interest in the capital and profits of the partnership with aninvestment of $65,000,000. If the goodwill procedure is used to record Andre's entry into thepartnership:a). Boy's capital to $70,000,000b).Goodwill will be recorded at a value of $15,000,000c). Total capital to $175,000,000d). Andre's capital becomes $58,333,333

Andra will receive 1/3 profit share by investing $65,000,000. Therefore the fair value of the…

Answered: Xion and Boy are allies with…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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