Tony, Mary, and Tegan are partners with capital balances of $200,000, $120,000, and $120,000, respectively. Profits and losses are shared in a 3:1:1 ratio. Tegan decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by $40,000 and the value of land was increased by $80,000. Tony and Mary then agreed to pay Tegan $180,000 for her withdrawal from the partnership. Required: Prepare a schedule to identify capital account balances of Tony and Mary after Tegan's withdrawal under the: A. B. bonus method. goodwill method. 3
Tony, Mary, and Tegan are partners with capital balances of $200,000, $120,000, and $120,000, respectively. Profits and losses are shared in a 3:1:1 ratio. Tegan decided to withdraw and the partnership revalued its assets. The value of inventory was decreased by $40,000 and the value of land was increased by $80,000. Tony and Mary then agreed to pay Tegan $180,000 for her withdrawal from the partnership. Required: Prepare a schedule to identify capital account balances of Tony and Mary after Tegan's withdrawal under the: A. B. bonus method. goodwill method. 3
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 1EB: The partnership of Michelle, Amal, and Maureen has done well. The three partners have shared profits...
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to pay $910,666.67
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Tony, Mary, and Tegan are partners with capital balances of $200,000, $120,000, and $120,000, respectively.
Profits and losses are shared in a 3:1:1 ratio. Tegan decided to withdraw and the partnership revalued its assets.
The value of inventory was decreased by $40,000 and the value of land was increased by $80,000. Tony and
Mary then agreed to pay Tegan $180,000 for her withdrawal from the partnership.
Required:
Prepare a schedule to identify capital account balances of Tony and Mary after Tegan's withdrawal
under the:
A.
B.
bonus method.
goodwill method.
Carol would
80,000
(ho,000)
40,000
3
Tony
200,000
Mery
120,000
Tegan
120,000
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