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partnership has the following capital balances: Dunberry (40% of profits and losses) 100,000 Fox (30%) 300,000 Jacobs (30%) 200,000 Max is going to pay a total of 200,000 to these three partners personally in order to acquire a 25% ownership interest from each partner. Goodwill is to be recorded. What is Jacobs’ capital balance after the transaction? 150,000 200,000 175,000 195,000

partnership has the following capital balances: Dunberry (40% of profits and losses) 100,000 Fox (30%) 300,000 Jacobs (30%) 200,000 Max is going to pay a total of 200,000 to these three partners personally in order to acquire a 25% ownership interest from each partner. Goodwill is to be recorded. What is Jacobs’ capital balance after the transaction? 150,000 200,000 175,000 195,000

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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  1. A partnership has the following capital balances:

Dunberry (40% of profits and losses)

100,000

Fox (30%)

300,000

Jacobs (30%)

200,000

Max is going to pay a total of 200,000 to these three partners personally in order to acquire a 25% ownership interest from each partner. Goodwill is to be recorded. What is Jacobs’ capital balance after the transaction?

  1. 150,000
  2. 200,000
  3. 175,000
  4. 195,000 
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