Homework Answers
Answer:
a)
If Forgie is paid 20% in capital, he would be paid 20% in
goodwill
Therefore he is paid
= Paid Amount - Capital Balance
= $270,000 - $230,000
= $40,000 (which is 20% of goodwill)
100% of goodwill = $40,000/20% = $200,000
Share of Goodwill:
Pineda = $200000 x 30% = $60,000
Adams = $20000 x 30% = $60,000
Gomez = $200000 x 20% = $40,000
Therefore it increase the capital balance of partners.
Pineda = $300,000 + $60,000 = 360,000
Adams = $260,000 + $60,000 = $320,000
Gomez = $210,000 + $40000 = $250,000
b) Bonus Method is used:
Pineda = paid Amount - Capital Balance
=$350,000 - $300,000
=$50,000
Share of Goodwill:
Adams = $50000 x 3/6 =$25,000
Fergie = $50000 x 2/6 =$16,667
Gomez = $50000 x 1/6 =$8,333
Therefore it decrease the capital balance of partners:
Adams = $260,000 - $25,000 = $235,000
Fergie = $230,000 - $16,667 = $213,333
Gomez = $210,000 - $8,333 = $201,667
Add Answer to:
Pineda $ 300,000 260,000 230, eee 218,e00 Adams Fergie Gomez Total capital $1,eee,eee Answer each of...
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