A, B, and C are partners with capital balances of $50,000, $30,000 and $20,000 and share in the profit and loss of the ABC partnership 30 , 20 , and 50 , respectively They agree to admit D for a 20 interest Assuming D contributes directly to the partnership, answer the following questions Required ...

1 In this case D contributes an amount equal to his share which is 20 After adding up Ds contribution to the total assets which is currently 50000 30000 20000 1 00000 Will be 20 of the increased capit ...

A, B, and C are partners with capital balances of $50,000, $30,000 and $20,000 and share in

Question:

A, B, and C are partners with capital balances of $50,000, $30,000 and $20,000 and share in the profit and loss of the ABC 30%, 20%, and 50%, respectively. They agree to admit D for a 20% interest. Assuming D contributes directly to the answer the following questions:
Required:
1. If D is to contribute an amount equal to his book value share of the new how much should D contribute?
2. D contributes $38,000 to the and the bonus method is used. What will be the final capital balances for A, B, C, and D after admitting D?
3. If D contributes $40,000 to the and the method is used, what will be the final capital balances for A, B, C, and D after admitting D?
4. D contributes $10,000 to the and the method is used. What will be the final capital balances for A, B, C, and D after admitting D?
5. D contributes $12,000 to the and the bonus method is used. What will be the final capital balances for A, B, C, and D after admitting D?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...