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The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 $425,000 Total The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Gustafson joins the partnership by contributing $140,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. If the bonus method is used, Danielson's capital balance after the admission of Gustafson is: Select one: a. $185,400 b. $186,750 c. $186,000 d. $179,250

The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 $425,000 Total The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Gustafson joins the partnership by contributing $140,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. If the bonus method is used, Danielson's capital balance after the admission of Gustafson is: Select one: a. $185,400 b. $186,750 c. $186,000 d. $179,250

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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The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 $425,000 Total The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Gustafson joins the partnership by contributing $140,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. If the bonus method is used, Danielson's capital balance after the admission of Gustafson is: Select one: a. $185,400 b. $186,750 c. $186,000 d. $179,250
Transcribed Image Text:The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 $425,000 Total The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Gustafson joins the partnership by contributing $140,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. If the bonus method is used, Danielson's capital balance after the admission of Gustafson is: Select one: a. $185,400 b. $186,750 c. $186,000 d. $179,250
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