[mb12346746753]

Following is the current balance sheet for a local partnership of doctors:


Cash and current assets $ 67,000 Liabilities $ 74,000
Land 232,000
Building and equipment (net) 181,000

A, capital 54,000
B, capital 74,000
C, capital 124,000
D, capital 154,000


Totals $ 480,000 Totals $ 480,000



The following questions represent independent situations:

a.
E is going to invest enough money in this partnership to receive a 20 percent interest. No goodwill or bonus is to be recorded. How much should E invest?

E investment $____ = 101,500

b.
E contributes $50,000 in cash to the business to receive a 10 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances?

Individuals Capital Balances
A $ _____
B $ ______
C $ ______
D $ ______
E $ ______=50,000


The answers I calculated them to be are:

A. 13,200
B. 4,400
C 17,600
D 8800 But it tells me they are incorrect