Within the partnership, Jamestown's capital is $140,000, and Maryland's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Manhattan to the partnership. Assume that Manhattan invests $50,000 for a one-fifth interest. Goodwill is to be recorded. What is the capital balances of Maryland after Manhattan is admitted into the partnership? Answer: 48000 The correct answer is: 48000
Within the partnership, Jamestown's capital is $140,000, and Maryland's is $40,000. They share income in a 3:2 ratio, respectively. They decide to admit Manhattan to the partnership. Assume that Manhattan invests $50,000 for a one-fifth interest. Goodwill is to be recorded. What is the capital balances of Maryland after Manhattan is admitted into the partnership? Answer: 48000 The correct answer is: 48000
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
Related questions
Question
please explain calculations
Transcribed Image Text:Within the partnership, Jamestown's capital is $140,000, and Maryland's is $40,000. They share income in a 3:2 ratio, respectively. They
decide to admit Manhattan to the partnership. Assume that Manhattan invests $50,000 for a one-fifth interest. Goodwill is to be recorded.
What is the capital balances of Maryland after Manhattan is admitted into the partnership?
Answer: 48000
The correct answer is: 48000
Within the partnership, Jamestown's capital is $140,000, and Maryland's is $40,000. They share income in a 3:2 ratio, respectively. They
decide to admit Manhattan to the partnership. Manhattan invests $50,000 for a one-fifth interest in the total capital of $230,000. The journal
entry to record Manhattan's admission into the partnership would include
A) a credit to Manhattan, Capital for $50,000. B) a credit to Cash for $50,000.
C)a debit to Maryland, Capital for $1,600.
D) a credit to Jamestown, Capital for $2,400.
a
b
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College