6. Mr. Incredible and Frozone are partners who share profits and losses in a ratio of...

  

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6. Mr. Incredible and Frozone are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on September 30, 2004: Mr. Incredible, Capital $25,000 Frozone, Capital $50,000 The partners agree to admit Elasti-girl to the partnership. Calculate the capital balances of each partner after the admission of Elasti-girl, assuming that bonuses are recorded when appropriate for each of the following assumptions: a. Elasti-girl pays Mr. Incredible $25,000 for 50 percent of his interest. b. Elasti-girl invests $25,000 for a 25 percent interest in the partnership. c. Elasti-girl invests $25,000 for a 30 percent interest in the partnership. d. Elasti-girl invests $25,000 for a 20 percent interest in the partnership. 6. Mr. Incredible and Frozone are partners who share profits and losses in a ratio of 3:2, respectively, and have the following capital balances on September 30, 2004: Mr. Incredible, Capital $25,000 Frozone, Capital $50,000 The partners agree to admit Elasti-girl to the partnership. Calculate the capital balances of each partner after the admission of Elasti-girl, assuming that bonuses are recorded when appropriate for each of the following assumptions: a. Elasti-girl pays Mr. Incredible $25,000 for 50 percent of his interest. b. Elasti-girl invests $25,000 for a 25 percent interest in the partnership. c. Elasti-girl invests $25,000 for a 30 percent interest in the partnership. d. Elasti-girl invests $25,000 for a 20 percent interest in the partnership.

Answer rating: 100% (QA)

Total capital after Elasti girl Admission Capital of two partners 2500050000 75000 Add Capital of ne... View the full answer