What is a good response to this statement? In this discussion post we are tasked with comparing the goodwill method and bonus method when individuals form a partnership but bring different amounts of assets. To begin the goodwill method can be described as a way for the partner with a lower amount of assets to pay off the partner with the higher amount of assets. For example, the fair value and the book value of the assets will be considered, once this is done the partners can agree on a fair value price the partner with the smaller amount of assets would pay to the other partner. An example of this could be if partner A had 100,000 worth of assets and partner b only had 80,000 worth of assets partner A could pay a lump sum to partner b either once or on a period-by-period basis for a set amount of time (Brown, 2020). This would ensure that the partner with the greatest amount of assets is being compensated fairly for the additional resources and investment they have brought to the partnership. The second method called the bonus method can be defined as giving the partner who has the most amount of assets a larger amount of partnership capital for the additional resources they own. For example, if partner a has 100,000 worth of assets and partner b has 50,000 worth of assets the partners could agree to give partner a 65 percent of capital where partner b would have 35 percent of capital (Bragg, 2024).
What is a good response to this statement?
In this discussion post we are tasked with comparing the
The second method called the bonus method can be defined as giving the partner who has the most amount of assets a larger amount of partnership capital for the additional resources they own. For example, if partner a has 100,000 worth of assets and partner b has 50,000 worth of assets the partners could agree to give partner a 65 percent of capital where partner b would have 35 percent of capital (Bragg, 2024).
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