A summary balance sheet for the partnership of Maddy, Nelson and Olsen on December 31, 2011 is shown below.Partners Maddy, Nelson and Olsen allocate profit and loss in their respective ratios of 9:6:10.
The partners agree to admit Poosh for a one-tenth interest.The fair market value for partnership land is $180,000, and the fair market value of the inventory is $150,000.
Required:
1.Record the entry to revalue the partnership assets prior to the admission of Poosh.
2.Calculate how much Poosh will have to invest to acquire a 10% interest.
3.Assume the partnership assets are not revalued.If Poosh paid $200,000 to the partnership in exchange for a 10% interest, what is the bonus that is allocated to each partner's capital account?
Definitions:
Rivalry
Competition or conflict between two or more parties, often for dominance or superiority in a specific area.
Nature of Competition
Refers to the characteristics and dynamics of rivalry among businesses in the same industry, which can influence market behavior and business strategies.
Porter's Five Forces
A model developed by Michael E. Porter that identifies and analyzes five competitive forces that shape every industry and help determine an industry's weaknesses and strengths.
E-commerce
The exchange of goods and services through the internet.
Q3: In reference to the probate process, which
Q4: Piglet Incorporated purchased 90% of the outstanding
Q7: When a parent acquires the preferred stock
Q14: Astrotuff Company is planning to purchase 200,000
Q19: Note to Instructor: This exam item is
Q19: What is the total amount for the
Q27: Pigeon Company owns 80% of the outstanding
Q35: Prepare journal entries in the motor pool
Q91: The number of people who have gray
Q100: Which of the following statements is false?<br>A)There