Solved

Gore and Dean Share Partnership Profits and Losses in the Ratio

Question 133

Short Answer

Gore and Dean share partnership profits and losses in the ratio of 6:4. Gore's Capital account balance is $320,000 and Dean's Capital account balance is $200,000. Naylor is admitted to the partnership by investing $360,000 and is to receive a one-fourth ownership interest. Gore, Dean and Naylor's capital balances after Naylor's investment will be Gore and Dean share partnership profits and losses in the ratio of 6:4. Gore's Capital account balance is $320,000 and Dean's Capital account balance is $200,000. Naylor is admitted to the partnership by investing $360,000 and is to receive a one-fourth ownership interest. Gore, Dean and Naylor's capital balances after Naylor's investment will be

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q126: When a partnership interest is purchased
A) every

Q128: Finney is admitted to a partnership with

Q132: Diaz and Helms sell to Mayo a

Q132: When admitting a new partner by investment

Q133: A bonus to a new partner
A) is

Q134: Bell and Herr sell 1/4 of their

Q135: On November 30, capital balances are Gast

Q135: The admission of a new partner to

Q137: Garr invests $20,000 in cash (admission by

Q138: King and Otto are partners who share

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents