Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 9. william desires to purchase a one-fourth capita

9. William desires to purchase a one-fourth capital and profit and loss interest in the...

80.2K

Verified Solution

Question

Accounting

image

9. William desires to purchase a one-fourth capital and profit and loss interest in the partnership of Eli, George, and Dick. The three partners agree to sell William one-fourth of their respective capital and profit and loss interests in exchange for a total payment of $40,000. The capital accounts and the respective percentage interests in profits and losses immediately before the sale to William follow: Percentage Capital Interests in Accounts Profits and Losses Eli $80,000 60% George 40,000 30% Dick 20,000 10% Total $140,000 100% All other assets and liabilities are fairly valued and implied goodwill is to be recorded prior to the acquisition by William. Immediately after William's acquisition, what should be the capital balances of Eli, George, and Dick, respectively? a. $60,000; $30,000; $15,000. b. $69,000; $34,500; $16,500. c. $77,000; $38,500; $19,500. d. $92,000; $46,000; $22,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students