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Select the correct answer for each of the following questions Cash $ 20000 Other Assets

Select the correct answer for each of the following questions. Cash ........... $ 20,000 Other Assets......... 180,000 ................ $200,000 Liabilities ......... $ 50,000 Alex, Capital (40%) ..... 37,000 Betty, Capital (40%)..... 65,000 Claire, Capital (20%)..... 48,000 Total Liabilities & Capital.... $200,000 1. If the assets are fairly valued on this balance sheet and the partnership wishes to admit Denise as a new one-sixth-interest partner without recording goodwill or bonus, Denise should contribute cash or other assets of a. $40,000. b. $36,000. c. $33,333. d. $30,000. 2. If assets on the initial balance sheet are fairly valued, Alex and Betty give their consent, and Denise pays Claire $51,000 for her interest, the revised capital balances of the partners would be a. Alex, $38,000; Betty, $66,500; Denise, $51,000. b. Alex, $38,500; Betty, $66,500; Denise, $48,000. c. Alex, $37,000; Betty, $65,000; Denise, $51,000. d. Alex, $37,000; Betty, $65,000; Denise, $48,000. 3. On December 31, 20X4, Alan and Dave are partners with capital balances of $80,000 and $40,000, and they share profit and losses in the ratio of 2:1, respectively. On this date, Scott invests $36,000 cash for a 20 percent interest in the capital and profit of the new partnership. The partners agree that the implied partnership goodwill is to be recorded simultaneously with Scott s admission. The firm s total implied goodwill is a. $4,800. b. $6,000. c. $24

Apr 15 2020 View more View Less

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