The E. N.D. partnership has the following capital balances as of the end of the current year:
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The E. N.D. partnership has the following capital balances as of the end of the current year:
Pineda $210,000
Adams $190,000
Fergie $180,000
Gomez $170,000
Total capital $750,000
a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $211,000 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?
Capital Balance
Pineda
Adams
Gomez
b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $335,000 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.)
Capital Balance
Adams
Fergie
Gomez
Answers: 2
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