Assume that the partners share profits and losses 4321

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




  Pineda $ 230,000  
  Adams
190,000  
  Fergie
160,000  
  Gomez
140,000  



      Total capital $ 720,000  






a.

Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $190,000 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 $280,000 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?

 


      Capital Balance
  Adams $    
  Fergie $    
  Gomez $    

Reference no: EM13481472

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