Reference no: EM132708645

The ABCD partnership is comprised of A, B, C, and D, with the following capital balances and profit/loss shares at a particular point in time.

Partner      Capital           Profit/loss share

A               300,000              20%
B                200,000              40%
C                350,000             30%
D                 150,000             10%

Problem 1) D wants to retire. Assuming D is paid $300,000, what is the debit or credit to C's capital account, assuming the bonus method is used?

Problem 2) D wants to retire. Assuming D is paid $200,000, with "goodwill to all partners", how much goodwill would be created?

Problem 3) D wants to retire. Assuming D is paid $200,000, with "goodwill to retiring partner only", how much goodwill would be created?