. Debra and Merina sell electronic equipment and supplies through their partnership. They wish to...
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. Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debras capital is $200,000, Merinas capital is $160,000, and they share income in a ratio of 3:2, respectively.
Required:
Record Waynes admission for each of the following independent situations:
a. Wayne directly purchases half of Merinas investment in the partnership.
b. Wayne invests the amount needed to give him a one-third interest in the capital of the partnership if no goodwill or bonus is recorded.
c. Wayne invests $110,000 for a one-fourth interest if Goodwill is to be recorded.
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| Cash | 110,000 |
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| Goodwill | 10,000 |
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| Wayne, Capital |
| 120,000 | ||
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| $120,000 = $480,000 total resulting capital x 1/4 |
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