Question: please answer for C and show work please David, Oscar, and Susan have the following capital balances; $40,000, $50,000 and $36,000 respectively. The partners share

 please answer for C and show work please David, Oscar, and please answer for C and show work please

David, Oscar, and Susan have the following capital balances; $40,000, $50,000 and $36,000 respectively. The partners share profits and losses 30%, 30%, and 40% respectively. Consider the following five independent transactions: a. Oscar retires and is paid $74,500 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of Susan after the transaction? Answer: b. Oscar retires and is paid $83,900 based on an independent appraisal of the business. If the goodwill method is used, what is the capital balance of Susan after the transaction? Answer: c. The three partners agree to admit George for a 20% interest. George contributes $40,000 to the partnership. If the bonus method is used, what is the capital balance of Susan after the transaction

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!