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.gcu.edu/learningPlatform/user/users.html?operations loggedin # learningPlatform/quiz student.. The partnership of Giligan, Skipper, and Ginger had total capital of $570,000 on December 31, 2017 as follows: Profit and loss sharing percentages are shown in parentheses. The partnership has no liabilities. If Mary Ann purchases a 25 percent interest from each of the old partners for a total payment of $270,000 directly to the old partnens Gilligan, Capital (30%) $180,000 255,000 135,000 $570,000 Skipper, Capital (45%) Ginger, Capital (25%) Total Minimized View total partnership net assets can logically be revalued to $1,080,000 on the basis of the price paid by Mary Ann. B. the payment of Mary Ann does not constitute a basis for revaluation of partnership net assets because the capital and income interests of the old partnership were not aligned. C. total capital of the new partnership should be $760,000 D. total capital of the new partnership will be 5840,000 assuming no revaluation. 2017 17-36:371 12:36:17 PM MST upExplanation / Answer
Answer is A. The partnership net asset can logically be revalued at $1080,000 on the basis of price paid by Mary Alan.
Explanation: Amount invested by Mary: $ 270,000
Partnership interest acquired: 25%
Therefore total capital of the firm (270000/25%): $ 1080,000
In this case, old partners are entitled to bonus which is mainly the result of benefit of valuation of net assets increased.
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