One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%.From her resignation, Nicki was paid $80 million to settle her holdings. The partners' total equitybefore the recognition of goodwill on Nicki's exit was $300 million. However, when Nicki left, theremaining partners' capital, excluding her share in goodwill, totaled $280 million. So how muchgoodwill does the company approve?

Goodwill in context to accounting is defined as that intangible asset that arises when a business…

Answered: One of the members in the fellowship…

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 local partnership is liquidating and is currently reporting the following capital balances: Desai has indicated that a forthcoming contribution will cover the $24,000 deficit. However, the two remaining partners have asked to receive the $52,000 in cash that is currently available. How much of this money should each of the partners receive? Barley, $22,000; Carter, $30,000. Barley, $32,000; Carter, $20,000. Barley, $29,000; Carter, $23,000. Barley, $32,500; Carter, $19,500.
Please explain it properly
RAMI has owned and operated a proprietorship for several years. On January 1, 2018, he decides to terminate this business and become a partner in the firm of ASMA and RAMI. ✓ RAMI's investment in the partnership consists of HK$ 140,000 in CASH, and the following assets of the proprietorship: ✔ ACCOUNTS RECEIVABLE HK$130,000 less allowance for doubtful accounts of HK$20,000, ✓ and EQUIPMENT HK$200,000 less accumulated depreciation of HK$45,000. It is agreed that the allowance for doubtful accounts should be HK$28, 000 for the partnership. The fair value of the equipment is HK$175, 500. ASMA brings with her $200,000 Book value in CASH, $ 280,000 Fair value. on Dec. 31, 2018, the net income was $100,000 and the income ratios are RAMI 70%, ASMA 30%. Prepare the journal entry to record the division of the net income. Instructions Journalize RAMI's admission to the firm of ASMA and RAMI.
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