Answer:
A) 10,200
Explanation:
Capital balance of both partners :
Cody Jenkins = $39,000
Lacey Tanner = $51,000
Existing capital =. $(39,000 + 51,000) = $90,000
New purchase price - Solano = $24,000
Total capital = $(90,000 + 24000) = $114,000
New capital :
New partner share × total capital
New partner capital = 30 % × 114000 = $34,200
Amount of partner bonus = new purchase price - new partner capital
Amount of partner bonus = 24,000 - 34,200 = - $10,200
Bonus share ratio:
Cody Jenkins and Lacey Tanner share profit and losses equally :
Cody Jenkins and Lacey Tanner :
0.5 × 10,200 = -$5,100
B)
Account. - - - - - - - - - - - - - Debit - - - - - Credit
Cash - - - - - - - - - - - - - - - 24,000
Capital: valerio Solano - - - - - - - - - - - 34,200
Capital: Cody Jenkins - - - 5,100
Capital: Lacey Tanner - - - 5,100
Total - - - - - - - - - - - - - - - 34,200 - - - 34,200
C.)
The purchase price is less than the book value of the 30% percentage of the partnership purchase, valerio Solano purchase price was $24,000 but he was allocated 30% of total capital which is $34,200
