Jim Welch and Sam Thayer share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Bill Ryan is admitted to the partnership. Instructions Prepare the journal entry to record the admission of Ron Ryan under each of the following assumptions: (a) Ryan invests $320,000 for a 25% ownership interest. (b) Ryan invests $300,000 for a 30% ownership interest.

Jim Welch and Sam Thayer share partnership income on a 3:2 basis. They have capital balances of $560,000 and $280,000, respectively, when Bill Ryan is admitted to the partnership. Instructions Prepare the journal entry to record the admission of Ron Ryan under each of the following assumptions: (a) Ryan invests $320,000 for a 25% ownership interest. (b) Ryan invests $300,000 for a 30% ownership interest.

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter14: Partnerships And Limited Liability Entities

Section: Chapter Questions

Problem 2BD

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