on december 31 the capital balances and profit and loss ratios in the vkd company ar 3387277

On December 31, the capital balances and profit and loss ratios in the VKD Company are as follows: Partner Capital Balance Profit and Loss Ratio B. Vuong……………….$75,000……………………………………50% G. Khan………………….50,000…………………………………….30% R. Dixon…………………37,500…………………………………….20% Instructions Journalize the withdrawal of Dixon under each of the following independent assumptions: (a) Each of the continuing partners agrees to pay $22,500 cash from personal funds to purchase Dixon s ownership equity. Each partner receives 50% of Dixon s equity. (b) Khan agrees to purchase Dixon s ownership interest for $45,000 cash. (c) Dixon is paid $47,500 from partnership assets. (d) Dixon is paid $29,500 from partnership assets. Taking It Further Assume that, instead of any of the above options, Dixon withdraws from the partnership by selling her interest to S. Meyers. Do Vuong and Khan need to approve it? Why or why not?

 

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