Homework Soursea partner has the following capital balance henry40 of gains
a partner has the following capital balance: henry(40% of gains losses) $80000; thomas(25%) 100000; catherine(35%) 140000. Anne is going to invest $81000 into the business to acquire a 30% ownership interest. Goodwill is going to be recorded. What will be Anne\'s begenning capital balance?
Solution
Answer is $135,000
| Contribution of Anne | 81000 |
| % of Ownership Interest | 30% |
| So New Value of Business(81000/30%) | 270000 |
| Anne\'s investment = 30% (Original capital plus Anne\'s investment) | |
| $105,000 + Goodwill = .30 ($315,000 + $105,000 + Goodwill) | |
| $105,000 + Goodwill = $126,000 + .30 Goodwill | |
| .70 Goodwill = $21,000 | |
| Goodwill = $30,000 | |
| Anne\'s investment (Capital) = $105,000 + $30,000 = $135,000 |
