At year-end, the Queen City partnership has the following capital balances: Isabella, Capital Catherine, Capital Elizabeth, Capital Victoria, Capital $ 150,000 130,000 100,000 90,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $114,000 from the business based on the original contractual agreement. Required: The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws. Isabella's captal before withdrawal of Elizabeth Isabella's share of goodwill recognition Isabella's capital balance after withdrawal of Elizabeth $
At year-end, the Queen City partnership has the following capital balances: Isabella, Capital Catherine, Capital Elizabeth, Capital Victoria, Capital $ 150,000 130,000 100,000 90,000 Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $114,000 from the business based on the original contractual agreement. Required: The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws. Isabella's captal before withdrawal of Elizabeth Isabella's share of goodwill recognition Isabella's capital balance after withdrawal of Elizabeth $
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 55P
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Transcribed Image Text:At year-end, the Queen City partnership has the following capital balances:
Isabella, Capital
Catherine, Capital
Elizabeth, Capital
Victoria, Capital
$ 150,000
130,000
100,000
90,000
Profits and losses are split on a 3:3:2:2 basis, respectively. Elizabeth decides to leave the partnership and is paid $114,000 from the
business based on the original contractual agreement.
Required:
The payment made to Elizabeth beyond her capital account was for Elizabeth's share of previously unrecognized goodwill. After
recognizing partnership goodwill, compute Isabella's capital balance after Elizabeth withdraws.
Isabella's capital before withdrawal of Elizabeth
Isabella's share of goodwill recognition
Isabella's capital balance after withdrawal of Elizabeth
S
0
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