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Brenda, Cynthia, and Kimberly have partnership capital account balances of $91000 each. Profit and losses are shared on a basis of 3:2:1 for Brenda, Cynthia, and Kimberly respectively. Kimberly agrees to sell three-fourths of his ownership interest to Brenda for $59000 and one-fourth to Cynthia for $16000. Brenda and Cynthia will use personal assets to purchase Kimberly's interest. The partnership's entry to record Kimberly's withdrawal from the partnership would be

Brenda, Cynthia, and Kimberly have partnership capital account balances of $91000 each. Profit and losses are shared on a basis of 3:2:1 for Brenda, Cynthia, and Kimberly respectively. Kimberly agrees to sell three-fourths of his ownership interest to Brenda for $59000 and one-fourth to Cynthia for $16000. Brenda and Cynthia will use personal assets to purchase Kimberly's interest. The partnership's entry to record Kimberly's withdrawal from the partnership would be

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 37P
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Brenda, Cynthia, and Kimberly have partnership capital account balances of $91000 each. Profit and losses are shared on a basis of 3:2:1 for Brenda, Cynthia, and Kimberly respectively. Kimberly agrees to sell three-fourths of his ownership interest to Brenda for $59000 and one-fourth to Cynthia for $16000. Brenda and Cynthia will use personal assets to purchase Kimberly's interest. The partnership's entry to record Kimberly's withdrawal from the partnership would be Brenda, Capital Cynthia, Capital Kimberly, Capital Kimberly, Capital Cash Kimberly, Capital Brenda, Capital Cynthia, Capital Kimberly, Capital Brenda, Capital Cynthia, Capital 56250 18750 75000 75000 91000 75000 75000 59000 16000 68250 22750
Transcribed Image Text:Brenda, Cynthia, and Kimberly have partnership capital account balances of $91000 each. Profit and losses are shared on a basis of 3:2:1 for Brenda, Cynthia, and Kimberly respectively. Kimberly agrees to sell three-fourths of his ownership interest to Brenda for $59000 and one-fourth to Cynthia for $16000. Brenda and Cynthia will use personal assets to purchase Kimberly's interest. The partnership's entry to record Kimberly's withdrawal from the partnership would be Brenda, Capital Cynthia, Capital Kimberly, Capital Kimberly, Capital Cash Kimberly, Capital Brenda, Capital Cynthia, Capital Kimberly, Capital Brenda, Capital Cynthia, Capital 56250 18750 75000 75000 91000 75000 75000 59000 16000 68250 22750
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