Oak, Pine, and Maple are partners with present capital balances of $42,000, $39,000, and $90,000, respectively. The partners share profits and losses according to the following percentages: 20% for Oak, 20% for Pine, and 60% for Maple. The existing assets of the original partnership have market values equal to book values except for the following:
Accounts Receivable:
overvalued by $10,000
Land:
undervalued by $30,000
Pine has agreed to sell her interest to the partnership for $45,000.
Required:
Calculate the capital balances for each individual in the new partnership, assuming use of the bonus and goodwill methods. The goodwill method should recognize the goodwill traceable to all partners.

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The Answer of Oak, Pine, and Maple are partners with present capital balances of $42,000, $39,000, and $90,000, respectively. The partners share profits and losses according to the following percentages: 20% for Oak, 20% for Pine, and 60% for Maple. The existing assets of the original partnership have market values equal to book values except for the following:
Accounts Receivable:
overvalued by $10,000
Land:
undervalued by $30,000
Pine has agreed to sell her interest to the partnership for $45,000.
Required:
Calculate the capital balances for each individual in the new partnership, assuming use of the bonus and goodwill methods. The goodwill method should recognize the goodwill traceable to all partners.

Oak, Pine, and Maple Are Partners with Present Capital Balances