The following balances as of the end of 2022 for the partnership of X, Y, and Z, together with their respective profit a
Posted: Mon May 30, 2022 7:59 am
The following balances as of the end of 2022 for the partnership
of X, Y, and Z, together with their respective profit and loss
percentages, were as follows:
Assets - 360,000; X, loan - 18,000; X, capital (20%) - 84,000; Y,
capital (20%) - 78,000; Z, capital (60%) - 180,000
X decided to retire from the partnership. Parties agreed to adjust
the assets to their fair market value of 420,000 as of December 31,
2022. X will be paid 98,000 for X’s total partnership interest
(amount is inclusive of X loan). No goodwill is to be
recorded.
After X’s retirement, what will be the balance of Y’s
capital account?
of X, Y, and Z, together with their respective profit and loss
percentages, were as follows:
Assets - 360,000; X, loan - 18,000; X, capital (20%) - 84,000; Y,
capital (20%) - 78,000; Z, capital (60%) - 180,000
X decided to retire from the partnership. Parties agreed to adjust
the assets to their fair market value of 420,000 as of December 31,
2022. X will be paid 98,000 for X’s total partnership interest
(amount is inclusive of X loan). No goodwill is to be
recorded.
After X’s retirement, what will be the balance of Y’s
capital account?