Hu-Kang-Lo Oriental Design is a partnership owned by three individuals. The partners share profits and losses in
Hu withdraws from the partnership on this date.
Record Hus withdrawal from the partnership under the following independent plans:
1. In a personal transaction, Hu sells her equity to Win, who pays Hu $110,000 for her interest. Kang and Lo agree to accept Win as a partner.
2. The partnership pays Hu cash of $5,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest.
3. The partnership pays Hu $50,000 for her book equity.
4. The partners agree that the equipment is worth $146,000 and that accumulated depreciation should remain at $39,000. After the revaluation, the partnership settles with Hu by giving her cash of $10,000 and inventory for the remainder of her bookequity.
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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