Thanks guys for responding on the bonus/goodwill question. I was wondering because one of the Becker questions used the bonus method for the solution, yet there was no mention of it in the question. Here it is in case you guys notice something I don't. I thought at first it was the “exact method.”
Blau and Rubi are partners who share profits and losses in the ratio of 6:4, respectively. On May 1, their respective capital accounts were as follows:
Blau $ 60,000
Rubi 50,000
On that date, Lind was admitted as a partner with a one- third interest in capital and profits for an investment of $40,000. The new partnership began with total capital of $150,000. Immediately after Lind's admission, Blau's capital should be:
The answer is $54,000. Solution is in a table format so hard to paste. But for those with Becker it's # CPA-00754 in Ch.10 Partnership section.
BEC: 73, 81
AUD: 85
FAR: 71, 77
REG: 74, 75...finally DONE! 😀
*This is my 2nd attempt at the CPA exam. For all of you who have failed this exam many times, given up on it, or taken a break like me, remember that it is still possible to finish what you started...failure is the opportunity to begin again more intelligently 🙂
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