Question

A partnership has the following capital balances:
Carpenter (40% of gains and losses) . . . . . . . . . . . $140,000
Dane (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280,000
Elkhart (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 340,000
Krystal is going to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Dane’s capital balance after the transaction?
a. $210,000.
b. $255,000.
c. $340,000.
d. $352,000.



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  • CreatedJanuary 08, 2015
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