Callie is admitted to the adams amp beal partnership under, Ask an Expert

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Callie is admitted to the Adams & Beal Partnership under the goodwill method. Callie contributes cash of $20,000 and non-cash assets with a market value of $30,000 and book value of $15,000 in exchange for a 20% ownership interest in the new partnership. Prior to the admission of Callie, the capital of the existing partnership was $130,000 and an appraisal showed the partnership net assets were fairly stated. Adams & Beal shared profits and losses at a ratio of 80/20, respectively.

Which of the following goodwill amounts would be recorded?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9961067

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