Carla Vista Holdings Ltd. purchased the net assets of Future Ltd. in January 2024 for $9,769,000. Carla Vista had appraisals conducted that indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory Accounts receivable Machinery $1,487,000 927,000 3,703,000 Patents Accounts payable Loan payable $748,000 894,000 824,000 The patent acquired has 16 years remaining in its useful life. Carla Vista's management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete.
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
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