Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50% ). The partnership's capital balances are as follows: Meir, S 76,000; Benson, $116,000; and Lau, $198,000. Benson decides to withdraw from the partnership. 2. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption: Rhode invests (a) $130,000; (b) $94,900; and (c) $170, 300. (Do not round intermediate calculations.)

Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir, 20%; Benson, 30%; and Lau, 50% ). The partnership's capital balances are as follows: Meir, S 76,000; Benson, $116,000; and Lau, $198,000. Benson decides to withdraw from the partnership. 2. Assume that Benson does not retire from the partnership described in Part 1. Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal entries to record Rhode's entry into the partnership under each separate assumption: Rhode invests (a) $130,000; (b) $94,900; and (c) $170, 300. (Do not round intermediate calculations.)

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter14: Choice Of Business Entity—operations And Distributions

Section: Chapter Questions

Problem 47P

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Question

Meir, Benson, and Lau are partners and share income and loss in a 2:3:5 ratio (in percents: Meir,
20%; Benson, 30%; and Lau, 50%). The partnership's capital balances are as follows: Meir, $
76,000; Benson, $116, 000; and Lau, $198, 000. Benson decides to withdraw from the
partnership. 2. Assume that Benson does not retire from the partnership described in Part 1.
Instead, Rhode is admitted to the partnership on February 1 with a 25% equity. Prepare journal
entries to record Rhode's entry into the partnership under each separate assumption: Rhode
invests (a) $130, 000; (b) $94, 900; and (c) $170, 300. (Do not round intermediate calculations.)

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