The ABCD Partnership has the following balance sheet at January 1, 2010, prior to the admission of new partner, Eden. Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?

Question

The ABCD Partnership has the following balance sheet at January 1, 2010, prior to the admission of new partner, Eden.  Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?

Quizplus · Accepted Answer

The Answer of The ABCD Partnership has the following balance sheet at January 1, 2010, prior to the admission of new partner, Eden.  Eden contributed $124,000 in cash to the business to receive a 20% interest in the partnership. Goodwill was to be recorded. The four original partners shared all profits and losses equally. After Eden made his investment, what were the individual capital balances?

The ABCD Partnership Has the Following Balance Sheet at January