SOLUTIONS:

CASE #1
Requirement (a):
The capital balances of the existing partners are adjusted as follows:
Increase
  Carrying amts. Fair values
(Decrease)
Cash 30,000 30,000 -
Accounts receivable 140,000 120,000 (20,000)
Inventory 200,000 160,000 (40,000)
Equipment 500,000 450,000 (50,000)
Accounts payable (80,000) (80,000) -
Accrued liabilities (20,000) (20,000)
Net assets 790,000 660,000 (130,000)

  Unadjusted Adjustment Adjusted

-130K x 60% =
Apple, Capital (60%) 515,000
-78K 437,000
-130K x 40% =
Banana, Capital (40%) 275,000
-52K 223,000
790,000 660,000

Date B, Capital (223,00 x 1/2) 111,500

C, Capital (223,00 x 1/2) 111,500
to record the admission of C to the partnership

Requirement (b):
Before
  Admission of C After admission
admission
A, Capital 437,000 437,000
B, Capital 223,000 (111,500) 111,500
C, Capital - 111,500 111,500
660,000 - 660,000

Requirement (c):
Before
Partner  admission Admission of C After admission
A 60% 60%
B 40% -20% 20%
C 20% 20%
100% 100%
CASE #2
Solutions:

Requirement (a):
The fair value of the 20% interest acquired by C is computed as follows:
Adjusted net assets before admission of C 660,000
Divide by: Interest of old partners (100% - 20%) 80%
Grossed-up fair value 825,000
Multiply by: Interest of C 20%
Fair value of C's interest 165,000

Date Cash 165,000

C, Capital 165,000
to record the admission of C to the partnership

Requirement (b):
Before
  Admission of C After admission
admission
A, Capital 437,000 437,000
B, Capital 223,000 223,000
C, Capital - 165,000 165,000
660,000 165,000 825,000

Requirement (c):
Before
Partner  admission Admission of C After admission
(100% - 20%) x
A 60% 60% 48%
(100% - 20%) x
B 40% 40% 32%
C 20% 20%
100% 100%

CASE #3:
Solution:
Adjusted net assets 660,000
Divide by: Existing partners' interest 3/5
Total net assets after investment by Carrots 1,100,000
Multiply by: Carrots’ interest 2/5
Amt. of contribution by Carrots 440,000