Qais & Zaki formed a partnership on February 10, 2009. Qais contributed cash of $150,000, while Zaki contributed inventory with a fair value of $120,000. Due to Qais's expertise in selling, Zaki agreed that Qais should have 60 percent of the total capital of the partnership. Qais and Zaki agreed to recognize goodwill. What is the total capital of the QZ partnership and the capital balance of Zaki after the goodwill is recognized? a. Total capital $270,000 and Zaki, Capital $162,000 b. Total capital $450,000 and Zaki, Capital $270,000 c. Total capital $300,000 and Zaki, Capital $180,000 d. Total capital $350,000 and Zaki, Capital $198, 000

Qais & Zaki formed a partnership on February 10, 2009. Qais contributed cash of $150,000, while Zaki contributed inventory with a fair value of $120,000. Due to Qais's expertise in selling, Zaki agreed that Qais should have 60 percent of the total capital of the partnership. Qais and Zaki agreed to recognize goodwill. What is the total capital of the QZ partnership and the capital balance of Zaki after the goodwill is recognized? a. Total capital $270,000 and Zaki, Capital $162,000 b. Total capital $450,000 and Zaki, Capital $270,000 c. Total capital $300,000 and Zaki, Capital $180,000 d. Total capital $350,000 and Zaki, Capital $198, 000

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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Question

Qais & Zaki formed a partnership on February 10, 2009. Qais contributed cash of $150,000, while Zaki contributed inventory with a fair value of $120,000. Due to Qais's expertise in selling, Zaki agreed that Qais
should have 60 percent of the total capital of the partnership. Qais and Zaki agreed to recognize goodwill. What is the total capital of the QZ partnership and the capital balance of Zaki after the goodwill is
recognized? a. Total capital $270,000 and Zaki, Capital $162, 000 b. Total capital $450,000 and Zaki, Capital $270, 000 c. Total capital $300, 000 and Zaki, Capital $180,000 d. Total capital $350,000 and Zaki,
Capital $198, 000

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