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6. A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (35%). Donovan (40%) Watkins (25%). $280,000 300,000 170,000 Ranzilla agrees to pay a total of $245,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's pay- ment. What is Donovan's capital balance after the transaction? a. $225,000 b. $294,000 c. $392,000 d. $398,000

6. A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (35%). Donovan (40%) Watkins (25%). $280,000 300,000 170,000 Ranzilla agrees to pay a total of $245,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's pay- ment. What is Donovan's capital balance after the transaction? a. $225,000 b. $294,000 c. $392,000 d. $398,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (35%). Donovan (40%) Watkins (25%). b. $294.000 c. $392,000 d. $398,000 $280,000 300,000 170,000 Ranzilla agrees to pay a total of $245,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's pay- ment. What is Donovan's capital balance after the transaction? a. $225,000
Transcribed Image Text:A partnership has the following capital balances with partners' profit and loss percentages indicated parenthetically: Burks (35%). Donovan (40%) Watkins (25%). b. $294.000 c. $392,000 d. $398,000 $280,000 300,000 170,000 Ranzilla agrees to pay a total of $245,000 directly to these three partners to acquire a 25 percent ownership interest from each. The partnership will record goodwill based on the new partner's pay- ment. What is Donovan's capital balance after the transaction? a. $225,000
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