The E.N.D. partnership has the following capital balances as of the end of the current year:
| $ 150,000 |
| 130,000 |
| 120,000 |
| 110,000 |
| $ 510,000 |
Answer each of the following independent questions:
Required:
- 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?
- 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?Note: Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
