A partnership has the following capital balances: Comprix (35% of gains and losses) . . . .

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A partnership has the following capital balances:
Comprix (35% of gains and losses) . . . . . . . . . ... $150,000
Heflin (40%) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Kaplan (25%) . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . 320,000
Mahar is going to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Heflin's capital balance after the transaction?
a. $225,000
b. $234,000
c. $312,000
d. $360,000
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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Fundamentals of Advanced Accounting

ISBN: 978-1259722639

7th edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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