6. A partnership has the following capital balances: Carpenter (40% of gains and

Question

6. A partnership has the following capital balances: Carpenter (40% of gains and losses) Dane (30%) 140,000 280,000 340,000 Krystal is going to pay a total of $240,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Dane's capital balance after the transaction? a. $210,000. b. S255,000. c $340,000. d $352,000. 7. The capital balance for Bolcar is $110,000 and for Neary is $40,000. These two partners share profits and losses 70 percent (Bolcar) and 30 percent (Neary). Kansas invests $$0,000 in cash into the partnership for a 30 percent ownership Neary's capital balance after Kansas's investment? a. $35,000. The bonus method will be used. What is S37.000. c. $40,000. d $43,000. "h. 8. Bishop has a capital balance of $120,000 in a local partnership, and Cotton has a $90,000 balance. These two partners share profits and losses by a ratio of 60 percent to Bishop and 40 percent to Cotton. Lovett invests S60,000 in cash in the partnership for a 20 percent ownership. The goodwill method will be used. What is Cotton's capital balance after this new investment? a. $99,600. b. $102,000. c. $112,000. d. $126,000 9The capital balance for Messalina is S210.000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded? a. $216,000, $144,000, S90,000 b. $218,000, $142,000, $88,000. c. $222,000, $148,000, $80,000. d S240,000, $160,000, $100,000.

Explanation / Answer

6) Answer : B) $255,000

    Dane’s capital balance =$255,000

7) Answer: B)$37,000

Nearby’s capital balance after Kansas’s investment = $37,000

8) Answer : B)$102,000

    Cotton’s capital balance after this new investment   = $102,000

9) Answer : A) $216,000;$144,000;$90,000

   The capital balances of Messalina , Romulus, and Claudius after the investment

                                                        = $216,000;$144,000;$90,000

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