Calculate terms of the original partnership agreement, Accounting Basics

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Calculate terms of the original partnership agreement

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	$

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Accounting Basics: Calculate terms of the original partnership agreement

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Accounting Basics: Calculate terms of the original partnership agreement

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Accounting Basics: Calculate terms of the original partnership agreement

Reference No:- TGS0554617

Recent Questions Asked Accounting Basics

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