Question

2. The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 Total $425,000 The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. Case B: Now assume Gustafson paid $90,000 for a 20% interest in partnership capital. Instruction: For each case (each case is independent), please use both Bonus method and Goodwill method to analyze the problem. Prepare the Statement of Partners' Capital Balances, as well as the related journals prepared for the partnership /1

Answer 1

Bonus Methoel → New Capital balenie= (Burwot Izid + 150000490.000 515000 515000 20% 103000 = Gustafson gets 20% of that Custatason is getting a bonus of a bering some =103000 depo goooo = 13000 (Borus) So, 13000 to be split, 25%, 45% and 30% beauty 2030 ou 13 000 - 25% Capital Danielson 3250 - 45). Capital Eklund 5850 30% Capital Forseberg 3960 Cash 9oooo Capital Custa fason 103000 Crood will Method Aven paid in capitel as per Custe fason shore gorro 4S1voo Actual paid in Capital is 515000 So, Goodwill 5/5oro -y sorro = 65ooo So, 65000 will be credited to old partners as cash goooo Goodwill anatson Capital Eklund (65000 29250 Capital forrebey Capital Cinstafason goooo 20 capital 85000 76250 Castro 19500

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