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Business, 05.05.2020 08:31 AriaMartinez
1. The capital balances of the DEF Partnership are as follows: Danielson $180,000 Eklund 95,000 Forsberg 150,000 Total $425,000 2. The partners' income sharing ratio is: Danielson, 25%; Eklund, 45%; Forsberg, 30%. Gustafson joins the partnership by contributing $125,000 to the partnership for a 20% interest in partnership capital. Assume the partnership's identifiable net assets are carried at amounts approximating fair value. Now assume Gustafson paid $90,000 for a 20% interest in partnership capital. If the goodwill method is used to record the admission of Gustafson, Forsberg's capital balance immediately following admission of Gustafson is: A. $145,125 B. $150,000 C. $172,500 D. $154,875
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