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Find what will be the credit to d capital account

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The ABC partnership is comprised of A, B, and C. A, B, and C have the following capital balances and profit sharing percentages at a given point in time:

Partner            Capital balance          Profit/loss percentage

A                        300,000                    20%
B                       200,000                     30%
C                         300,000                     50%
TOTAL                   800,000                      100%

Problem 1) D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest. What will be the credit to D's capital account assuming the bonus method is used?

Problem 2) D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.  What will be the credit to D's capital account assuming the goodwill method is used?

Problem 3) D wants to buy into the partnership. D will pay $200,000 for a 10% ownership interest.  How much goodwill would be recorded assuming the goodwill method is used?

Reference no: EM132753268

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