Use the Following Information to Answer Questions The Partners' Income Sharing Ratio Is: Danielson, 25%; Eklund, 45%;
Use the following information to answer Questions .
The capital balances of the DEF Partnership are as follows:
The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%.
Gustafson joins the partnership by contributing $125,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value.
-If the bonus method is used, Gustafson's capital balance is:
A) $110,000
B) $125,000
C) $ 85,000
D) $115,000
Correct Answer:
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