Exercise 12-8 Retirement of partner
Hunter, Folgers, and Tulip have been partners while sharing net income and loss in a 5:2:3 ratio. On January 31, the date Tulip retires from the partnership, the equities of the partners are Hunter, $370,000; Folgers, $259,000; and Tulip, $185,000.
I am struggling with getting the proper 5:2:3 ratio for the remaining 2 partners. I am getting the wrong answer to were these two set of ratios,
I cannot understand what I am doing wrong.:
(1) Assume Tulip is paid $205,000 for her equity using partnership cash. (Do not round intermediate calculations. Round your final answers to the nearest dollar.)
(2) Assume Tulip is paid $155,000 for her equity using partnership cash. (Do not round intermediate calculations. Round your final answers to the nearest dollar.)