Assume that the Soto- Nieves partnership, owned by Rose Soto and Alex Nieves, has total...
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Accounting
Assume that the Soto- Nieves partnership, owned by Rose Soto and Alex Nieves, has total capital of $350,000. Amelia acquires a 45% ownership (capital) interest in the partnership by making a cash investment of $50,000. The procedure of determining Amelia's capital credit and the bonus to the old partners is a follow:
a. Determine the total capital of the new partnership.
Total capital of existing partnership
Investment by new partner, Edayra
Total capital of new partnership
b. Determine the new partner's credit.
Total capital of existing partnership
New partner's ownership interest
New partner's capital credit
Answer & Explanation
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