Clayton is attempting to consider the price to be paid for a partnership interest. The exiting partnership is characterized as follows: Partnership Total Asset Book Value 800,000 Fair market value excluding goodwill 850,000 Liabilities Accounts payable 300,000 Bank loans 200,000 Other liabilities 58,000 Interest to be acquired by Clayton In capital 20% In profit and losses 25% Determine the amount of consideration that Clayton should have to convey in order to acquire 20% of interest in capital and 25% of interest in profits and losses. Select one: 73,000X 48,000 34,500 60,500
Clayton is attempting to consider the price to be paid for a
|
|
Partnership |
|
Total Asset |
|
|
Book Value |
800,000 |
|
Fair market value excluding |
850,000 |
|
Liabilities |
|
|
Accounts payable |
300,000 |
|
Bank loans |
200,000 |
|
Other liabilities |
58,000 |
|
Interest to be acquired by Clayton |
|
|
In capital |
20% |
|
In |
25% |
Determine the amount of consideration that Clayton should have to convey in order to acquire 20% of interest in capital and 25% of interest in profits and losses.
Select one:
- 73,000X
- 48,000
- 34,500
- 60,500
Step 1
Partnership is the agreement between the two or more partners which carried the business jointly and in this case, 25% stake in profits and 20% capital stake, although the capital information is missing, so we have taken the balancing figure as profit or loss in the balancing figure to the liabilities side.
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