Question

A partnership has the following capital balances:
Elgin (40% of gains and losses) . . . . . . . . . . . . . . . $100,000
Jethro (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Foy (30%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Oscar is going to pay a total of $200,000 to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Jethro’s capital balance after the transaction?
a. $150,000.
b. $175,000.
c. $195,000.
d. $200,000.



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  • CreatedOctober 04, 2014
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