Problem 142 LO 2 3 5 6 Capital balances under the bonus and goodwill methods A partnership has assets of 210000 and liabilities of 95000 The capital infor mation for the current partners is as follows Partner A Partner B Partner C Profitandlosspercentages 50 30 20 Capitalbalances 70000 30000 15000 Given the above information respond to each of the following independent fact situations 1 Assuming new Partner D acquired 20 of Partner Bs interest from B for consideration of 15000 what is Partner Bs capital balance after this transaction 2 Assume that the above assets are understated by 25000 If new Partner D were to acquire a 30 interest in the partnership by making a contribution of assets to the partnership what would be the suggested value of the consideration 3 If the above assets were overstated by 25000 what amount of consideration should new Partner D convey to the partnership in exchange for a 25 interest in capital keeping in mind that D would also be acquiring a 30 interest in profits 4 If new Partner D conveyed assets with a fair market value of 66000 to the partnership in exchange for a 30 interest in capital and a 25 interest in profits what would be Bs capi tal balance after the transaction assuming use of the bonus method 5 Assume the same facts as item 4 above except assume use of the goodwill method What would be Bs capital balance after the transaction 6 Assumethattheaboverecognizedassetsareunderstatedby25000andnewPartnerDcon veys assets with a fair market value of 70000 to the partnership in exchange for a 30 interest in capital and a 25 interest in profits what would be As capital balance after the transaction assuming use of the bonus method 7 Assuming the same facts as item 6 above what amount of goodwill is suggested by the transaction 8 Assume the same facts as item 7 above except that Partner D acquired their interest for 25000 cash What amount of goodwill is suggested by the transaction 9 Assume that Partner B sold their interest to the partnership for 51000 and that previously recognized assets are understated by 30000 What would be Partner As capital balance assuming use of the goodwill method where goodwill traceable to the entire entity is recognized