Hook, Line and Floater have continued trading for a further year and they are considering admitting Sinker

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Hook, Line and Floater have continued trading for a further year and they are considering admitting Sinker

on 31 December 20X9. For the purposes of calculating goodwill, the partners obtain a valuation of the

business as if it were to be sold on 31 December 20X9. This valuation is $750,000. The statement of

financial position at 31 December 20X9 shows net assets of $375,000. Calculate goodwill.

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