Robin,Cardinal, Jay are partners sharing profits and losses 30/30/40 respectively. Their capital balances are: Robin $17

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answerhappygod
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Robin,Cardinal, Jay are partners sharing profits and losses 30/30/40 respectively. Their capital balances are: Robin $17

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Robin,Cardinal, Jay are partners sharing profits and losses
30/30/40 respectively. Their capital balances are:
Robin $175,000
Cardinal $300,000
Jay $275,000
total $750,000
The old and partners agree that the assets are undervalued by
$100,000.
c. Assume, instead Sparrow puts into the partnership $350,000 of
cash and is awarded a 50% interest. Record the entry of sparrow
using the goodwill method.
d. In the first year after Sparrow's entrance under the
conditions outlined in part "c" above, an agreement was made
amending the sharing of profits and losses, whereby Jay gets a
salary of $40,000, and each partner receives 10% interest on their
beginning capital balances with the remainder shared equally.
Unfortunately, the amendment was never written down and the
partners are in dispute over this arrangement. The partnership lost
$400,000.
Prepare a schedule showing how the loss will be shared.
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