Question the partnership of gilligan skipper and ginger had

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Reference no: EM13349346

Question :

The partnership of Gilligan, Skipper, and Ginger had net capital of $570,000 on December 31, 2014 as follows:

Gilligan, Capital (30%) $180,000

Skipper, Capital (45%) 255,000

Ginger, Capital (25%) 135,000

Total $570,000

Profit and loss sharing percentages are shown in parentheses. The partnership has no liabilities. If Mary Ann purchases a 25 % interest from each of the old partners for a net payment of $270,000 directly to the old partners

A) Total partnership net assets will logically be revalued to $1,080,000 on the basis of the price paid by Mary Ann.

B) The payment of Mary Ann does not constitute a basis for revaluation of partnership net assets because the capital and income interests of the old partnership were not aligned.

C) Net capital of the new partnership could be $760,000.

D) Total capital of the new partnership will be $840,000 considering no revaluation.

Reference no: EM13349346

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