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a. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $190,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners

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Based on the goodwill method, the capital balances of the three partners will be:

  • Pineda - $275,000
  • Adams - $235,000
  • Gomez - $170,000

What will be the capital balance for the partners?

First find the total firm goodwill:

= Goodwill paid to Fergie / Fergie capital share

= (190,000 - 160,000) / ( 2 ÷ (3 + 3 + 2 + 2))

= $150,000

This will be shared to the partners in the ratio, 3:3:2:2:

Pinada gets:

= 230,000 + (150,000 x 3 / (3 + 3 + 2 + 2))

= $275,000

Adams gets:

= 190,000 +  (150,000 x 3 / (3 + 3 + 2 + 2))

= $235,000

Gomez gets:

= 140,000 +  (150,000 x 2 / (3 + 3 + 2 + 2))

= $170,000

Find out more on goodwill at https://brainly.com/question/26372157.

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