The ABCD Partnership Has the Following Balance Sheet at January

question 55

Essay

The ABCD Partnership has the following balance sheet at January 1, 2012, prior to the admission of new partner, Eden.
Eden acquired a 20% interest in the partnership by contributing a total of $71,500 directly to the other four partners. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: Adams, 15%; Barnes, 35%; Cordas, 30%; and Davis, 20%. After Eden made his investment, what were the individual capital balances?

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Definitions:

Synaptic Pruning

The process of reducing the number of synapses, or connections between neurons, which is thought to make the brain's network more efficient.

Dendrites

Branch-like extensions from the neuron cell body, which receive signals from other neurons.

Cell Maturation

The final stage of cell development in which cells reach their functional form and acquire the ability to perform their specific roles in the body.

Differentiation

The process by which cells or tissues undergo a change toward a more specialized form or function, often in the context of developmental biology.