2nd_case - cash inventory Building Total assets Balance...

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Balance Sheet 1/2/04 Heyman Capital Mullins cash $40,000 N/P $10,000 1/1/2004 $45,000 inventory $12,000 Heyman $45,000 10/1/2004 $12,000 Building $48,000 Mullins $45,000 Withdraws $9,600 $9,600 Total assets $100,000 Liabilities/OE $100,000 12/31/2004 $20,220 $67,620 Income Summary Heyman Mullins Net Income $33,000 10 %(avg Cap) $4,800 $4,500 $(9,300) Bonus * $3,000 $(3,000) 6:4 split $12,420 $8,280 $(20,700) $20,220 $12,780 $- A. Bonus Method Lewis investment $66,000 Existing Capital $115,800 Total Capital $181,800 FMV of 1/3 of Part. $60,600 < $66,000 Invested Lewis Paid Bonus of $5,400 to Heyman and Mullins Cash $66,000 Heyman $3,240 Mullins $2,160 Lewis $60,600 1/1/2005 Heyman capital $70,860 Mullins capital $50,340 Lewis capital $60,600 Total Capital $181,800 B. Goodwill Method FMV=$66,000/(1/3)= $198,000 Total capital w/ Lewis $181,800 Goodwill $16,200 Goodwill $16,200 Heyman $9,720 Mullins $6,480 Cash $66,000 Lewis $66,000 1/1/2005 Heyman capital $77,340 Mullins capital $54,660 Lewis capital $66,000 Total Capital $198,000
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$45,000 $12,780 $48,180
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2nd_case - cash inventory Building Total assets Balance...

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