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timurjin [86]
3 years ago
5

ABC Partnership has the following capital balances and profit and loss percentages. A (50%) $100,000 B (30%) $200,000 C (20%) $3

00,000 D will pay a total of $200,000 to the three partners in a privately negotiated transaction to acquire a 25% ownership interest. The goodwill method is to be used. How much Goodwill is recorded by the partnership a. $300,000 b. $225,000 c. $400,000 d. $0 e. $200,000
Business
1 answer:
AVprozaik [17]3 years ago
8 0

Answer:

Answer:

$225,000

Explanation:

40 x 0.25 = 10% interest from Goodwill

Goodwill new interest = 30%

300,000(40%) x 30% = $225,000

Explanation:

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7 0
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7 0
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Read 2 more answers
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