K, F, and G are partners with capital balances of $60,000, $40,000 and $30,000 and who share in the profit and loss of the KFG partnership based on 30 %, 20%, and 50%, respectively. Assume that with the agreement of other partners, partner G sells half of her interest o partner W for $19,000. The money goes to partner G directly. No asset evaluation or goodwill is recorded by the partnership (i.e., book value method is sed). hich of the following will be recorded by the partnership to record the admission partner W? A credit to Partner G's capital account by $19,000. A credit to Partner W's capital account by $19,000. A credit to Partner G's capital account by $15,000.
K, F, and G are partners with capital balances of $60,000, $40,000 and $30,000 and who share in the profit and loss of the KFG partnership based on 30 %, 20%, and 50%, respectively. Assume that with the agreement of other partners, partner G sells half of her interest o partner W for $19,000. The money goes to partner G directly. No asset evaluation or goodwill is recorded by the partnership (i.e., book value method is sed). hich of the following will be recorded by the partnership to record the admission partner W? A credit to Partner G's capital account by $19,000. A credit to Partner W's capital account by $19,000. A credit to Partner G's capital account by $15,000.
Chapter11: Partnerships: Distributions, Transfer Of Interests, And Terminations
Section: Chapter Questions
Problem 42P
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Transcribed Image Text:K, F, and G are partners with capital balances of $60,000, $40,000 and $30,000 and
who share in the profit and loss of the KFG partnership based on 30%, 20%, and
50%, respectively.
Assume that with the agreement of other partners, partner G sells half of her interest
to partner W for $19,000. The money goes to partner G directly. No asset
revaluation or goodwill is recorded by the partnership (i.e., book value method is
used).
Which of the following will be recorded by the partnership to record the admission
of partner W?
A credit to Partner G's capital account by $19,000.
A credit to Partner W's capital account by $19,000.
A credit to Partner G's capital account by $15,000.
A credit to Partner W's capital account by $15,000.
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