Lament desires to purchase a one-fourth capital and profit and loss interest in the partnership of...
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Lament desires to purchase a one-fourth capital and profit and loss interest in the partnership of Hebrews, Genesis, and John. The three partners agree to sell Lament 25% of their respective capital and profit and loss interests in exchange for a total payment of $100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Lament follow: Hebrews Genesis John 168,000 104,000 48,000 50% 35% 15% All other assets and liabilities are fairly valued and Asset revaluation is to be recorded prior to the acquisition by Lament. Immediately after Lament's acquisition, what should be the capital balances of Hebrews, Genesis, and John, respectively? Lament desires to purchase a one-fourth capital and profit and loss interest in the partnership of Hebrews, Genesis, and John. The three partners agree to sell Lament 25% of their respective capital and profit and loss interests in exchange for a total payment of $100,000. The payment is made directly to the individual partners. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to Lament follow: Hebrews Genesis John 168,000 104,000 48,000 50% 35% 15% All other assets and liabilities are fairly valued and Asset revaluation is to be recorded prior to the acquisition by Lament. Immediately after Lament's acquisition, what should be the capital balances of Hebrews, Genesis, and John, respectively?
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Calculate the total capital of the partnership before the sale to Lament Total capital Hebrews capit... View the full answer
Related Book For
Advanced Accounting
ISBN: 9780132568968
11th Edition
Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith
Posted Date:
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