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Question - The E.N.D. partnership has the following capital balances as of the end of the current year:
Pineda $310,000
Adams 270,000
Fergie 240,000
Gomez 220,000
Total capital $1,040,000
Answer each of the following independent questions: Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $285,000 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?Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $365,000 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?
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