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
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