Question

The E.N.D. partnership has the following capital balances as of the end of the current year:

Pineda | $ | 290,000 |

Adams | 250,000 | |

Fergie | 220,000 | |

Gomez | 200,000 | |

Total capital | $ | 960,000 |

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 $253,000 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?

Assume that the partners share profits and losses 4:3:2:1,
respectively. Pineda retires and is paid $325,000 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.)**

Answer #1

A. | If the goodwill method is used, what is the capital balance of the remaining three partners? | |||||

goodwill | (253000-220000)/0.2) | 165000 | ||||

Goodwill | old capital | new capital | paid | net new capital | ||

Pineda | 49500 | 290000 | 339500 | |||

339500 | ||||||

Adams | 49500 | 250000 | 299500 | 299500 | ||

Fregie | 33000 | 220000 | 253000 | -253000 | 0 | |

Gomez | 33000 | 200000 | 233000 | 233000 | ||

165000 | 960000 | |||||

B. | If the bonus method is used, what is the capital balance of the remaining three partners? | |||||

bonus | (325000-290000) | 35000 | ||||

bonus(allocated in profit ratio) | old capital | new capital | net new capital | |||

Pineda | 35000 | 290000 | -325000 | 0 | ||

Adams | -17500 | 250000 | 232500 | 232500 | ||

Fregie | -11666.67 | 220000 | 208333.3 | 208333 | ||

Gomez | -5833.33 | 200000 | 194166.7 | 194167 | ||

The E.N.D. partnership has the following capital balances as of
the end of the current year: Pineda $ 280,000 Adams 250,000 Fergie
240,000 Gomez 230,000 Total capital $ 1,000,000 a. Assume that the
partners share profits and losses 3:3:2:2, respectively. Fergie
retires and is paid $289,000 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?
pineda:
adams:
gomez:
b. Assume that the partners share...

The E.N.D. partnership has the following capital balances as of
the end of the current year: Pineda $ 310,000 Adams 280,000 Fergie
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following independent questions: Assume that the partners share
profits and losses 3:3:2:2, respectively. Fergie retires and is
paid $312,000 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? Assume that the...

The E.N.D. partnership has the following capital balances as of
the end of the current year: Pineda $ 320,000 Adams 280,000 Fergie
250,000 Gomez 230,000 Total capital $ 1,080,000
a. Assume that the partners share profits and losses 3:3:2:2,
respectively. Fergie retires and is paid $305,000 based on the
terms of the original partnership agreement. If the goodwill method
is used, what is the capital balance of the remaining three
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If the goodwill method is used, what is the capital of the
remaining partners? if the bonus method is used, what is the
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At year-end, the Circle City partnership has the following
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Capital
$
170,000
Gonzalez,
Capital
150,000
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Capital
120,000
Freeney,
Capital
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Profits and losses are split on a 3:3:2:2 basis, respectively.
Clark decides to leave the partnership and is paid $138,000 from
the business based on the original contractual agreement.
The payment made to Clark beyond his capital account was for
Clark's share of previously unrecognized goodwill. After
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At year-end, the Circle City partnership has the following
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$
170,000
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150,000
Clark, Capital
120,000
Freeney, Capital
110,000
Profits and losses are split on a 3:3:2:2 basis, respectively.
Clark decides to leave the partnership and is paid $138,000 from
the business based on the original contractual agreement.
The payment made to Clark beyond his capital account was for
Clark's share of previously unrecognized goodwill. After
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