Partnership : Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio. Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways: By bringing a new asset or cash By purchasing the interest in partnership from existing partners of the firm By paying the bonus for the goodwill of the firm By receiving the bonus for goodwill Requirement-1: To prepare: The journal entry to record admission of new partner Adison investing $90,000

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Answer 1

Question

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

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! Required information [The following information applies to the questions displayed below.] Karane Enterprises, a calendar-year manufacturer based in College Station, Texas, began business in 2022. In the process of setting up the business, Karane has acquired various types of assets. Below is a list of assets acquired during 2022: Asset Office furniture Machinery Used delivery truck* Cost $ 150,000 1,560,000 40,000 *Not considered a luxury automobile. Date Placed in Service 02/03/2022 07/22/2022 08/17/2022 During 2022, Karane was very successful (and had no §179 limitations) and decided to acquire more assets in 2023 to increase its production capacity. These are the assets acquired during 2023: Date Placed in Service 03/31/2023 Asset Computers and information system Cost $ 400,000 Luxury auto* Assembly equipment Storage building 80,000 1,200,000 700,000 05/26/2023 08/15/2023 11/13/2023 *Used 100% for business purposes. Karane generated taxable income in 2023 of $1,732,500 for…

Answer 2

Question

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Expert Solution & Answer

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Answer 3

Question

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Expert Solution & Answer

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Answer 4

Question

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Expert Solution & Answer

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Answer 5

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Answer 6

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

Answer 7

Chapter 12, Problem 8E

To determine

Concept Introduction:

Partnership: Partnership is one of the types of business origination. Under the partnership, two or more individuals agree to form a business together and share losses and profits in the predetermined ratio.

Admission of a partner: An existing partnership may admit a new partner and a new partnership is formed. The accounting of admission of new partner depends upon the way of admission of the partner. A new partner may admit in an existing firm in following ways:

By bringing a new asset or cash

By purchasing the interest in partnership from existing partners of the firm

By paying the bonus for the goodwill of the firm

By receiving the bonus for goodwill

Requirement-1:

To prepare: The journal entry to record admission of new partner Adison investing $90,000

Answer 8

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

Answer 9

To determine

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

Answer 10

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Answer 11

To determine

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 12 - Prob. 1DQ Ch. 12 - Prob. 2DQ Ch. 12 - Prob. 3DQ Ch. 12 - Prob. 4DQ Ch. 12 - Prob. 5DQ Ch. 12 - Prob. 6DQ Ch. 12 - Prob. 7DQ Ch. 12 - Prob. 8DQ Ch. 12 - Prob. 9DQ Ch. 12 - Prob. 10DQ

Concept explainers

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000

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Chapter 12 Solutions

Concept explainers

Requirement-2: To prepare: The journal entry to record admission of new partner Adison investing $120,000

Requirement-3: To prepare: The journal entry to record admission of new partner Adison investing $80,000

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Chapter 12 Solutions

Requirement-2:

To prepare: The journal entry to record admission of new partner Adison investing $120,000

Requirement-3:

To prepare: The journal entry to record admission of new partner Adison investing $80,000