ADVANCED FINANCIAL ACCOUNTING-ACCESS
ADVANCED FINANCIAL ACCOUNTING-ACCESS
12th Edition
ISBN: 9781260518740
Author: Christensen
Publisher: MCG
Question
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Chapter 15, Problem 15.14Q
To determine

Revaluation method: under this method partnership assets are revalued for admission of disassociation of partners, the aim is to increase the fair value of the business, this practice is not recognized by GAAP, however this method is used to properly assign changes in assets and liabilities to the partners who have been managing the business during the time the changes in the value occurred.

the fair value of partnership in the partners agree to recognize goodwill for the difference between the book value and fair value and determine the entries partnership should make up on C’s admission.

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