The total of the partners’, capital accounts was $110,000 before the recognition of partnership asset revaluation in preparation for the final withdrawal of a partner whose profit or loss sharing is 2/10. He was paid $28,000 by the firm in final settlement for his interest. The remaining partners’ capital accounts, excluding their share of the assets revaluation, totaled $90,000 after his withdrawal. How much was the total asset revaluation that the firm agreed upon? A. 40,000 B. 28,000 C. 20,000 D. 8,000
The total of the partners’, capital accounts was $110,000 before the recognition of partnership asset revaluation in preparation for the final withdrawal of a partner whose profit or loss sharing is 2/10. He was paid $28,000 by the firm in final settlement for his interest. The remaining partners’ capital accounts, excluding their share of the assets revaluation, totaled $90,000 after his withdrawal. How much was the total asset revaluation that the firm agreed upon? A. 40,000 B. 28,000 C. 20,000 D. 8,000
Chapter10: Partnerships: Formation, Operation, And Basis
Section: Chapter Questions
Problem 59P
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The total of the partners’, capital accounts was $110,000 before the recognition of partnership asset revaluation in preparation for the final withdrawal of a partner whose profit or loss sharing is 2/10. He was paid $28,000 by the firm in final settlement for his interest. The remaining partners’ capital accounts, excluding their share of the assets revaluation, totaled $90,000 after his withdrawal. How much was the total asset revaluation that the firm agreed upon?
A. 40,000 B. 28,000 C. 20,000 D. 8,000
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