Clayton is attempting to consider the price to be paid for a partnership interest. The exiting partnership is characterized as follows: PartnershipTotal Asset Book Value800,000Fair market value excluding goodwill850,000Liabilities Accounts payable300,000Bank loans200,000Other liabilities58,000Interest to be acquired by Clayton In capital20%In profit and losses25% Determine the amount of consideration that Clayton should have to convey in order to acquire 20% of interest in capital and 25% of interest in profits and losses. a. 48,000b. 73,000c. 34,500d. 60,500

Given information is: Share of new partner = 20% Value of assets and liabilities is also given

Answered: Determine the amount of consideration…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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Clayton is attempting to consider the price to be paid for a partnership interest. The exiting partnership is characterized as follows:

	Partnership
Total Asset
Book Value	800,000
Fair market value excluding goodwill	850,000
Liabilities
Accounts payable	300,000
Bank loans	200,000
Other liabilities	58,000
Interest to be acquired by Clayton
In capital	20%
In profit and losses	25%

Determine the amount of consideration that Clayton should have to convey in order to acquire 20% of interest in capital and 25% of interest in profits and losses.

a. 48,000

b. 73,000

c. 34,500

d. 60,500

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