Use the Following Information to Answer the Question(s) Below

question 15

Multiple Choice

Use the following information to answer the question(s) below.

Quincy has decided to retire from the partnership of Quincy, Robert, and Sam. The partnership will pay Quincy $400,000. Total partnership capital should be revalued based on the excess payment to Quincy. (Assume the book values of the assets listed below equals fair values.) A summary balance sheet for the Quincy, Robert, and Sam partnership appears below. Quincy, Robert, and Sam share profits and losses in a ratio of 1:1:3, respectively.

-What goodwill will be recorded?

• A)$ 80,000
• B)$240,000
• C)$320,000
• D)$400,000

---

Definitions:

Enamel

Hard substance covering the exposed portion of the tooth.

Salivary Amylase

An enzyme produced by the salivary glands that begins the digestion of starches into sugars in the mouth.

Gastric Lipase

Gastric lipase is an enzyme secreted by the stomach that plays a crucial role in digesting dietary fats by breaking down triglycerides into monoglycerides and free fatty acids.

HCl

Hydrochloric acid, a strong acidic compound found in gastric juice that aids in digestion and kills bacteria.