Question: PLEASE ANSWER QUESTION CORRECTLY AND SHOW WORK PLEASE!!! Donald, Anne, and Todd have the following capital balances; $40,000,$60,000 and $30,000 respectively. The partners share profits
Donald, Anne, and Todd have the following capital balances; $40,000,$60,000 and $30,000 respectively. The partners share profits and losses 20%,50%, and 30% respectively. Anne retires and is paid $70,000 based on an independent appraisal of the business. If the goodwill method is used, what is the capital of the remaining partners? a. Donald, $18,000 : Todd, $35,000 b. Donald, $25,000 : Todd, $10,000 c. Donald, 544,000 ; Todd, $36,000 d. Donald, $55,000, Todd $60,000 e. Donald, 560,000 , Todd, 550,000
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
