Assume the partnership of Dean, Hardin, and Roth has been in existence for a number of years.
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Assume the partnership of Dean, Hardin, and Roth has been in existence for a number of years. Dean decides to withdraw from the partnership when the partners' capital balances are as follows:
Partner Capital Balance Profit and Loss Ratio
Dean 60,000 40%
Hardin 15,000 30%
Roth 25,000 20%
An appraisal of the business and its property estimates the fair value to be $100,000. Dean has agreed to receive $64,000 in exchange for his partnership interest.
What are the remaining partners' capital balances after Dean's interest is dissolved, assuming the bonus method is applied? Explain
Related Book For
College Accounting
ISBN: 978-1111528126
11th edition
Authors: Tracie Nobles, Cathy Scott, Douglas McQuaig, Patricia Bille
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