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Question - The capital balances of the DEF Partnership are as follows: David $180,000 Emma 95,000 Finn 150,000 Total $425,000
The partners' income sharing ratio is: David, 25%; Emma, 45%; Finn, 30%. Assume the partnership's identifiable net assets are carried at amounts approximating fair value.
Case B: Now assume Gail paid $90,000 for a 20% interest in partnership capital.
Instruction: please use both Bonus method and Goodwill method to analyze the problem. Prepare the Statement of Partners' Capital Balances, as well as the related journals prepared for the partnership.
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