A partnership has the following account balances: Cash $50,000; Other Assets $600,000;… 1 answer below »

A partnership has the following account balances: Cash $50,000; Other Assets $600,000; Liabilities $240,000; Nixon, Capital (50 percent of profits and losses) $200,000; Hoover, Capital (20 percent) $120,000; and Polk, Capital (30 percent) $90,000. Each of the following questions should be viewed as an independent situation:

a. Grant invests $80,000 in the partnership for an 18 percent capital interest. Goodwill is to be recognized. What are the capital accounts thereafter?

b. Grant invests $100,000 in the partnership to get a 20 percent capital balance. Goodwill is not to be recorded. What are the capital accounts thereafter?

 

 

Submit Your Assignment and get professional help from our qualified experts!


A partnership has the following account balances: Cash $50,000; Other Assets $600,000;… 1 answer below » was first posted on July 1, 2020 at 1:12 am.
©2019 "Submit Your Assignment". Use of this feed is for personal non-commercial use only. If you are not reading this article in your feed reader, then the site is guilty of copyright infringement. Please contact me at ukbestwriting@gmail.com

 

"Is this question part of your assignment? We Can Help!"

Essay Writing Service