The following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 30,000 Liabilities $ 40,000 Land 180,000 A, capital 20,000 Building and equipment (net) 100,000 B, capital 40,000 C, capital 90,000 D, capital 120,000 Totals $ 310,000 Totals $ 310,000 The following questions represent independent situations: E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?
The following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 30,000 Liabilities $ 40,000 Land 180,000 A, capital 20,000 Building and equipment (net) 100,000 B, capital 40,000 C, capital 90,000 D, capital 120,000 Totals $ 310,000 Totals $ 310,000 The following questions represent independent situations: E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter14: Partnerships And Limited Liability Entities
Section: Chapter Questions
Problem 2BD
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The following is the current balance sheet for a local
| Cash and current assets | $ | 30,000 | Liabilities | $ | 40,000 |
| Land | 180,000 | A, capital | 20,000 | ||
| Building and equipment (net) | 100,000 | B, capital | 40,000 | ||
| C, capital | 90,000 | ||||
| D, capital | 120,000 | ||||
| Totals | $ | 310,000 | Totals | $ | 310,000 |
The following questions represent independent situations:
E contributes $42,000 in cash to the business to receive a 20 percent interest in the partnership.
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