What is the capital balance of the remaining three partners

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The E.N.D. partnership has the following capital balances as of the end of the current year:

Pineda $190,000

Adams 170,000

Fergie 160,000

Gomez 150,000

Total capital$ 670,000

Problem 1: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $203,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

Problem 2: Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $290,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners?

Reference no: EM132953377

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