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Question - The question is as follows:
1. Tarantino, Hodgson and McGuire have a partnership where they share profits and losses equally. Each partner has a $30,000 balance in their capital account.
a. Show the transaction if Hodgson withdraws (May 10th) from the partnership and McGuire and Tarantino purchase his share for $20,000 each out of their own personal assets. - Record journal entries.
b. If the partnership itself pays $40,000 worth of its own cash for Hodgson's share, who gets the bonus? How much?
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1.Posting errors are identified in the following table.
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