Saved Help Save B A partnership has the following capital b

Saved Help Save & B A partnership has the following capital balances: $180,000 280,000 380,800 losses) Compix (40% of gains Heflin (30%) Kaplan (30%) and Mahar is going to pay a total of $280,000 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? Multiple Choice $280,000 $210,000 K Prev E of 50 Next > e here to search ip

Solution

The correct choice is $ 210,000

Explanation:- Upon purchase of an interest, the new partner acquires each selling partner\'s capital interest . Partners\' capital accounts are debited for anyownership claims sold.

Heflin\'s capital balance = $ 280,000 - 0.25 * $ 280,000

Heflin\'s capital balance = $ 210,000