The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda . . . . . . . . . . . . . . . .. . $230,000Adams . . . . . . . . . . . . . . . . . . 190,000Fergie . . . . . . . . . . . . . . . . . . 160,000Gomez . . . . . . . . . . . . . . . . . 140,000Total capital . . . . . . . . . . . . . $720,000 Answer each of the following independent questions: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?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?

The E.N.D. partnership has the following capital balances as of the end of the current year: Pineda . . . . . . . . . . . . . . . .. . $230,000Adams . . . . . . . . . . . . . . . . . . 190,000Fergie . . . . . . . . . . . . . . . . . . 160,000Gomez . . . . . . . . . . . . . . . . . 140,000Total capital . . . . . . . . . . . . . $720,000 Answer each of the following independent questions: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?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?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 1PA: The partnership of Tatum and Brook shares profits and losses in a 60:40 ratio respectively after...

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