Agler, Bates and Colter Are Partners Who Share Income in a 5:3:2

question 27

Essay

Agler, Bates and Colter are partners who share income in a 5:3:2 ratio. Colter, whose capital balance is $150,000, retires from the partnership.
Required:
Determine the amount paid to Colter under each of the following cases:
(1) $50,000 is debited to Agler capital account; the bonus approach is used.
(2) Goodwill of $60,000 is recorded; the partial goodwill approach is used.
(3) $66,000 is credited to Bates' capital account; the total goodwill approach is used.

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Definitions:

Assignment Method

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Workers

Individuals engaged in some form of employment, contributing labor to produce goods or offer services.

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