In the SS partnership (to which Fozzie seeks admittance), the capital balances of Bert, Ernie, and Gonzo, who share income in the ratio of 35:55:10 are: Based on the preceding information, if the EXACT METHOD is used (i.e, no goodwill or bonus is recorded) how much will Fozzie be required to invest for a 20% interest? a) $ 120,000 b) $ 40,000 c) $ 50,000 d) $ 160,000 a) $ 120,000.

1. In the SS partnership (to which Fozzie seeks admittance), the capital balances of Bert, Ernie, and
Gonzo, who share income in the ratio of 35:55:10 are:
Based on the preceding information, if the EXACT METHOD is used (i.e, no goodwill or bonus
is recorded) how much will Fozzie be required to invest for a 20% interest?
a)
$ 120,000
b)
$ 40,000
c)
$ 50,000
d)
$ 160,000
a)
$ 120,000