Question: A and B form a new partnership with 40% , 60 % respectively interests in capital and profits. A invests $60,000 cash, B invests $20,000

A and B form a new partnership with 40% , 60 % respectively interests in capital and profits. A invests $60,000 cash, B invests $20,000 in cash and inventory with a book value 50,000 and a fair value 40,000.Under goodwill procedure total assets: Select one: a. $80,000 b. 150,000 c. $120,000 d. $130,000

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Help me do these questions-To answer the following questions, download the CSV file (or, copy-paste the data from the table on the right) and import it into your data software. The file is a...

A and B form a new partnership with 60% , 40 % respectively interests in capital and profits. A invests $100,000 cash and inventories with book value 50000 and a fair value 40000. B invests $50,000...

Question 7 Not yet answered On 1/1/2015 the company issued $20000 ,8%, 5 years bonds at 18484 when the market interest rate was 10% interest on bonds payable annually on 1/1 of each year interest...

A and B form a new partnership they agree on EQUAL interests in capital and profits , A invests $6500 in cash and B invests cash 1000 and a land at cost 3000 and a fair value 4000 Required : answer...

A and B form a new partnership they agree on 25%,75% respectively interests in capital and profits , A invests $10000 in cash and B invests cash 15000. capital balance to B under bonus: Select one:...

A and B form a new partnership they agree on 25%,75% respectively interests in capital and profits , A invests $10000 in cash and B invests cash 15000 . capital balance to A under bonus: Select one:...

Select the correct answer for each of the following questions. Cash ........... $ 20,000 Other Assets......... 180,000 ................ $200,000 Liabilities ......... $ 50,000 Alex, Capital (40%)...

answer only asap ty QUIZ: FAR 2 - Partnership Formation and Operation Multiple Choice. Select the letter of the correct answer. Use the answer sheet provided below. On May, 2016 Mary rose and Florie...

Select the correct answer for each of the following questions. 1. When property other than cash is invested in a partnership, at what amount should the noncash property be credited to the...

R Anele and Babalo were in partnership sharing profits and losses in the ratio 3 : 2 respectively. On 1 January 2020 the two partners agreed to combine their business with that of Crail, their main...

Q1. Two partnerships of A & B and C&D began business on Jan 1 st 2017 ; each partnership owns one retail appliance store. The two partnerships agree to combine as of April 1 st 2017 to form a new...

Gary wants to save $540,000 in 6 years, he currently has $145,000 in an investment. Due to financial constraints, he is unable to add to this investment. What interest rate must he earn to achieve...

Assume that: Air transportation requires 12,000 Btu/ton-mile Truck transportation requires 3000 Btu/ton-mile. Ship transportation requires 470 Btu/ton-mile Bananas travel by ship for 1250 miles from...

Find the total differential of the function. f ( x , y ) = 3 x 2 + 4 y 2 2 d f =

Misfire Company is a small editorial services company owned and operated by Pedro Borman. On August 31, 2010, the end of the current year, Misfire Company's accounting clerk prepared the unadjusted...

The Josie Theater, owned by Josie Micheals, will begin operations in March. The Josie will be unique in that it will show only triple features of sequential theme movies. As of March 1, the ledger of...

Queens Delivery Service is owned and operated by Lisa Dewar. The following selected transactions were completed by Queens Delivery Service during June 1. Received cash in exchange for capital stock...

Klugman Appliance uses a perpetual inventory system. For its flat-screen television sets, the January 1 inventory was 3 sets at $600 each. On January 10, Klugman purchased 6 units at $660 each. The...

Special order, activity-based costing. The Award Plus Company manufactures medals for winners of athletic events and other contests. Its manufacturing plant has the capacity to produce 10,000 medals...

Over the long term, the most effective teams are those with a culture, in which the group sees business challenges as opportunities for growth and learning on the part of both individuals and the...

d. Prizes. Employees who achieve weekly sales goals established by management would be eligible for prizes such as sports or theater tickets, dinner at a nice restaurant, gift certificates, or...

2. Some leaders in business and industry say that worker pride is the byproduct of achievement. What are your thoughts? What factors constitute achievement at your local McDonalds restaurant? Your...

2. If you decide to create your own brand, what personal qualities will give you greater visibility, recognition, and acceptance in the labor market? These qualities should send the message, Pick me;...