A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (40%
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A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically:
Burks (40% ) | $ | 180,000 |
Donovan (30%) | 280,000 | |
Watkins (30%) | 380,000 | |
Ranzilla agrees to pay a total of $280,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's payment. What is Donovan’s capital balance after the transaction?
$280,000
$210,000
$255,000
$273,000
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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