Admission and departure of partners under the goodwill method. Carlton, Weber, and Stansbury share profits equally and have capital balances of $120,000, $70,000, and $80,000, respectively, as of...


Admission and departure of partners under the goodwill method. Carlton, Weber, and Stansbury share profits equally and have capital balances of $120,000, $70,000, and $80,000, respectively, as of December 31, 2014. Effective January 1, 2015, Stansbury has transferred his interest in the partnership to Laidlaw for total consideration of $100,000. As part of agreeing to admit Laidlaw to the partnership, the profit- and loss-sharing agreement was modified as follows:


a. Carlton, Weber, and Laidlaw would receive annual salaries of $120,000, $90,000, and $90,000, respectively, to be withdrawn in equal amounts at the end of each calendar quarter.



May 02, 2022
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