PDA

View Full Version : Advanced accounting goodwill method partnerships


tawtaw1
Dec 13, 2012, 11:25 AM
P,L, and O are partners with capital balances of $50,000, $30,000 and $20,000 and who share in profit and loss of the PLO partnership 30%, 20%, and 50%, respectively, when they agree to admit C for a 20% interest. If C contributes $40,000 to the partnership and the goodwill method is used, what amount will be debited for goodwill?