A dental partnership has the following capital balances as of the end of the cur
ID: 2503653 • Letter: A
Question
A dental partnership has the following capital balances as of the end of the current year:
Pineda $ 330,000
Adams 290,000
Fergie 260,000
Gomez 240,000
Total capital $ 1,120,000
a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $296,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?
Partner
Capital Balance
Show your work for possible partial credit!
Pineda
Adams
Gomez
b. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $350,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners?
Partner
Capital Balance
Show your work for possible partial credit!
Pineda
Adams
Gomez
Partner
Capital Balance
Show your work for possible partial credit!
Pineda
Adams
Gomez
Explanation / Answer
http://www.chegg.com/homework-help/end-partnership-following-capital-balances-end-current-year-chapter-14-problem-24p-solution-9780078025402-exc
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