P, L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in the profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest.

QUESTION #15.

If C is to contribute an amount equal to his book value share of the new partnership, how much should C contribute?

A) $22,000

B) $20,000

C) $25,000

D) $18,000

E) $10,000

QUESTION #16.

C contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for C’s beginning capital balance?

A) $20,000

B) $25,000

C) $27,600

D) $32,600

E) $38,000

QUESTION #17.

If C contributes $40,000 to the partnership and the goodwill method is used, what amount will be debited for goodwill?

A) $15,000

B) $20,000

C) $25,000

D) $28,000

E) $60,000

QUESTION #18.

C contributes $10,000 to the partnership and the goodwill method is used. What will be the result of the goodwill calculation?

A) Goodwill of $15,000; split among the original partners.

B) Goodwill of $15,000; all to C.

C) Goodwill of $15,000; split among all four partners: P, L, O, and C.

D) Goodwill of $12,000; all to C.

E) Goodwill of $12,000; split among original partners.

QUESTION #15.

If C is to contribute an amount equal to his book value share of the new partnership, how much should C contribute?

A) $22,000

B) $20,000

C) $25,000

D) $18,000

E) $10,000

QUESTION #16.

C contributes $38,000 to the partnership and the bonus method is used. What amount will be credited for C’s beginning capital balance?

A) $20,000

B) $25,000

C) $27,600

D) $32,600

E) $38,000

QUESTION #17.

If C contributes $40,000 to the partnership and the goodwill method is used, what amount will be debited for goodwill?

A) $15,000

B) $20,000

C) $25,000

D) $28,000

E) $60,000

QUESTION #18.

C contributes $10,000 to the partnership and the goodwill method is used. What will be the result of the goodwill calculation?

A) Goodwill of $15,000; split among the original partners.

B) Goodwill of $15,000; all to C.

C) Goodwill of $15,000; split among all four partners: P, L, O, and C.

D) Goodwill of $12,000; all to C.

E) Goodwill of $12,000; split among original partners.

#### Top Answer

We can only answer your free 3 questions one at a time. You have two options to get your questions answered:... View the full answer