Answer:
$60,000
Explanation:
Total Capital = $50,000 + $30,000 + $20,000
Total Capital = $100,000
Using goodwill method, total value = $40,000/20% = $200,000
Balance after investment = $100,000 + $40,000 = $140,000
Goodwill = Total value of goodwill - Balance after investment
Goodwill = $200,000 - $140,000
Goodwill = $60,000
So, $60,000 will be debited for goodwill.