Question - Garber, Williams, and George are partners with present capital balances of $63,200, 64,400 and $24,400 respectively. the partners share profits and losses according to the following percentages: 60% for Garber, 20% for Williams, and 20% for George. Larsen is to join the partnership upon contributing $56,000 to the partnership in exchange for a 25% interest in capital and a 20% interest in profits and losses.
Required: Calculate the capital balances for each individual in the new partnership assuming use of the bonus and goodwill methods.