Question

A partnership has the following capital balances: Comprix (35% of gains and losses) $ 150,000 Heflin (40%) 300,000 Kaplan (25%) 320,000 Mahar is going to pay a total of $200,000 directly to these three partners to acquire a 25 percent ownership interest from each. Goodwill is to be recorded. What is Heflin’s capital balance after the transaction?

Answer 1

$225,000

Step-by-step explanation:

40 x 0.25 = 10% interest from Heflin

Heflin's new interest = 30%

300,000(40%) x 30% = $225,000