2.)

Answer the questions in ascending order.

Problem 2 4 questions 82 points each =8% Questions 15-18 are based on the following: Following is the current balance sheet for a local partnership of doctors: Parts A \& B represent independent situations: Required: Compute the amounts requested and enter your answer on the examination answer sheet A. E contributes $50,000 in cash to the business to receive a 20 percent interest inthe partnership. Goodwill is to be recorded. Profits and losses have previously been split according To the following percentages: A, 30 percent, B, 10 percent, C. 40 percent; and D, 20 percent. After E makes this investment, what are the capital balances of A and E ? 15 A's capital balance 16 E's capital balance B. E contributes $55,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10percent; B, 40 percent; C,30 percent; and D, 20 percent. After E makes this investment, what are the capital balances of A and E? 17. A's capital balance