Question

Admission of new partner—Goodwill Method Partners A and B are partners with capital balances of $270,000 and $150,000 respectively. They agree to admit Partner C as a partner with a 25% interest upon payment of $180,000 Assuming that the partners wish to recognize an intangible asset, what amount of goodwill should be reported? Select one: a. $180,000 b. $120,000 c. $45,000 d. $30,000

Name: admission of new partnergoodwill method partners a and b are partners with capital balances of 270000 and 150000 respectively they agree to admit partner c as a partner with a 25 interest up 35909
Uploaded: 2023-07-20T11:24:45-08:00
Duration: 3 min 15 s
Channel: Adi S
Description: admission of new partnergoodwill method partners a and b are partners with capital balances of 270000 and 150000 respectively they agree to admit partner c as a partner with a 25 interest up 35909

          Admission of new partner—Goodwill Method
Partners A and B are partners with capital balances of $270,000 and $150,000 respectively. They agree to admit Partner C as a partner with a 25% interest upon payment of $180,000 Assuming that the partners wish to recognize an intangible asset, what amount of goodwill should be reported?
Select one:
a.
$180,000
b.
$120,000
c.
$45,000
d.
$30,000

Added by Rosario P.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Adi S

07/20/2023

Step 1

- Partner A's capital: $270,000 - Partner B's capital: $150,000 - Total capital of A and B = $270,000 + $150,000 = $420,000 Show more…

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Admission of new partner—Goodwill Method Partners A and B are partners with capital balances of $270,000 and $150,000 respectively. They agree to admit Partner C as a partner with a 25% interest upon payment of $180,000 Assuming that the partners wish to recognize an intangible asset, what amount of goodwill should be reported? Select one: a. $180,000 b. $120,000 c. $45,000 d. $30,000