P12-30A Ho-Kim-Li Oriental Design is a partnership owned by three individuals. The parters share profits...
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P12-30A Ho-Kim-Li Oriental Design is a partnership owned by three individuals. The parters share profits and losses in the ratio of 30% to Ho, 40% to Kim, and 30% to Li. At December 31, 2008, the firm has this balance sheet 13,000 Total iabitities $103,000 Accouats reccivable $16,000 0001 ?5,000 130,000 Ho, capital Kim, capital i, capital 30,000 :45.000 40,000 i 30,0001 100,00 $220,000 Toral abilitis ad capital$220 00 Tocalassess Ho withdraws from the partnership on this date. Requirements Record Ho's withdrawal from the partnership under the following plans: 1. In a personal transaction, Ho sells her equity to Win, who pays Ho $75,000 for her interest, Kim and Li agree to ner. (pp. 608-610) accept Win as a part- 2. The partnership pays Ho cash of $10,000 and gives her a note payable for the remainder of her book equity in settlement of her partnership interest. (pp. 608-611) 3. The partnership pays Ho $44,000 for her book equity. (p. 611) 4. The partners agree that the equipment is worth $160,000 and that accumulated depreciation should remain at $30,000. After the revalua tion, the partnership settles with Ho by giving her cash of $$,000 and inventory for the remainder of her book equity. (pp. 608-610)
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