Question

A partnership has the following capital balances:
Arlo (50% of gains and losses) . . . . . . . . . . . . . . . . $ 120,000
Band (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 95,000
Carlyle (20%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100,000
David is going to invest $105,000 into the business to acquire a 30 percent ownership interest. Goodwill is to be recorded. What will be David’s beginning capital balance?
a. $94,500.
b. $105,000.
c. $126,000.
d. $135,000.



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  • CreatedJanuary 08, 2015
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