Glass,Falk,and Fayed had a partnership that splits profits and losses equally.Fayed declared his intention to withdraw from the partnership.Partnership assets were revalued and partner capital balances were adjusted to the following amounts:
$$\begin{array} { | l | r | }
\hline \text { Glass } & \$ 100,000 \
\hline \text { Falk } & \$ 115,000 \
\hline \text { Fayed } & \$ 90,000 \
\hline
\end{array}$$ Due to a set of unusual legal circumstances,it was mutually agreed that the partnership would settle with Fayed for a cash payment of $100,000.Are the remaining partners receiving a bonus? Explain.

Question

Glass,Falk,and Fayed had a partnership that splits profits and losses equally.Fayed declared his intention to withdraw from the partnership.Partnership assets were revalued and partner capital balances were adjusted to the following amounts:
 $$\begin{array} { | l | r | } 
\hline \text { Glass } & \$ 100,000 \
\hline \text { Falk } & \$ 115,000 \
\hline \text { Fayed } & \$ 90,000 \
\hline
\end{array}$$ Due to a set of unusual legal circumstances,it was mutually agreed that the partnership would settle with Fayed for a cash payment of $100,000.Are the remaining partners receiving a bonus? Explain.

Quizplus · Accepted Answer

The Answer of Glass,Falk,and Fayed had a partnership that splits profits and losses equally.Fayed declared his intention to withdraw from the partnership.Partnership assets were revalued and partner capital balances were adjusted to the following amounts:
 $$\begin{array} { | l | r | } 
\hline \text { Glass } & \$ 100,000 \
\hline \text { Falk } & \$ 115,000 \
\hline \text { Fayed } & \$ 90,000 \
\hline
\end{array}$$ Due to a set of unusual legal circumstances,it was mutually agreed that the partnership would settle with Fayed for a cash payment of $100,000.Are the remaining partners receiving a bonus? Explain.

Glass,Falk,and Fayed Had a Partnership That Splits Profits and Losses