90.2K

Verified Solution

Link Copied!

The partnership of Ace, Jack and Spade has been in business for 25 years. On December 31, 20X5. Spade decided to retire. The partnership balance sheet reported the following capito balances for each partner at December 20X5, Ace, Capital $ 150.000 Jack, Capital $ 200,000 Spade. Capital $ 120,000 The partners allocate partnership income and loss in the ratio 20:40:40, respectively. f Spade received $150,000 of partnership cash upon retirement. What is the amount of goodwill attributable to the entire partnership? Select one: a $ 60,000 b. $ 90.000 c$ 75,000 d. $ 30.000 Question 3 Incorrect When Nada and Rand decided to incorporate their partnership, the trial balance was as follows: Mark O out of 1 Debit Credit P Flag question Cash $60.000 35,000 65,000 Accounts Receivable (net) Inventory Equipment Accounts Payable Nada, Capital Rand, Capital 130.000 $60.000 150.000 80,000 Total $290,000 $290,000 The partnership's books will be closed, and new books will be used for N&R Corporation. The following additional information is available: 1. The estimated fair values of the assets & liabilities are as follows: $38.000 Accounts Receivable 70,000 Inventory Equipment 125,000 Accounts Payable 58,000 2. All assets and liabllities are transferred to the corporation 3. The common stock is $7 par. Nada and Rand receive a total of 30,000 shares. 4. Nada and Rand share profits and losses in the ratio 7:3 The number of shares received by Nada & Rand are as follows: Select one: a. Nada 19.596. Rand 10,404. b. Nada 15.000. Rand 15.000. c. Nada 21.000. Rand 9.000. X d. Nada 19,533. Rand 10.467

Answer & Explanation Solved by verified expert

See Answer