QUESTION 33 Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership. Required: Determine the amount paid to Colter under each of the following cases: (1) $50,000 is debited to Agler capital account; the bonus approach is used. (2) Goodwill of $60,000 is recorded; the partial goodwill approach is used. (3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.
QUESTION 33 Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership. Required: Determine the amount paid to Colter under each of the following cases: (1) $50,000 is debited to Agler capital account; the bonus approach is used. (2) Goodwill of $60,000 is recorded; the partial goodwill approach is used. (3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.
Chapter1: Financial Statements And Business Decisions
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![QUESTION 33
Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the
parmership.
Required:
Determine the amount paid to Colter under each of the following cases:
(1) S50,000 is debited to Agler capital account; the bonus approach is used.
(2) Goodwill of S60,000 is recorded; the partial goodwill approach is used.
(3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8a72274f-338c-4313-a401-e8d7885e164d%2F8c845c8c-c0ff-49b8-a3d9-7551ce28e151%2Fcbxsp1f_processed.jpeg&w=3840&q=75)
Transcribed Image Text:QUESTION 33
Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the
parmership.
Required:
Determine the amount paid to Colter under each of the following cases:
(1) S50,000 is debited to Agler capital account; the bonus approach is used.
(2) Goodwill of S60,000 is recorded; the partial goodwill approach is used.
(3) S66,000 is credited to Bates' capital account; the total goodwill approach is used.
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