A. Smith, a partner in an accounting firm, decided to withdraw from the partnership, Smith's share of the partnership profits and losses was 20%. Upon withdrawing from the partnership he was paid P88,800 in final settlement for his interest. The total of the partners' capital accounts before recognition of partnership goodwill prior to Smith's withdrawal was P252,000. After his withdrawal the remaining partners' capital accounts, excluding their share of goodwill, totalled P192,000. The total gooadwill of the firm was: O A. 144000 O B. 168000 O C. 192000 D. 300000
A. Smith, a partner in an accounting firm, decided to withdraw from the partnership, Smith's share of the partnership profits and losses was 20%. Upon withdrawing from the partnership he was paid P88,800 in final settlement for his interest. The total of the partners' capital accounts before recognition of partnership goodwill prior to Smith's withdrawal was P252,000. After his withdrawal the remaining partners' capital accounts, excluding their share of goodwill, totalled P192,000. The total gooadwill of the firm was: O A. 144000 O B. 168000 O C. 192000 D. 300000
Chapter15: Choice Of Business Entity—other Considerations
Section: Chapter Questions
Problem 48P
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT