Prepare the statement of partners capital balances

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Reference no: EM132643743

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.

Reference no: EM132643743

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