ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
ADV.FIN.ACCT.LL W/CONNECT+PROCTORIO PLUS
12th Edition
ISBN: 9781266380570
Author: Christensen
Publisher: MCG
Question
Book Icon
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.

Blurred answer
Students have asked these similar questions
Need Answer of this Financial Accounting Question Solution Please Provide Solution Correct without Fail
Operating leverage is closest
Calculate the estimated loss on the inventory
Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
SWFT Corp Partner Estates Trusts
Accounting
ISBN:9780357161548
Author:Raabe
Publisher:Cengage
Text book image
SWFT Comprehensive Volume 2019
Accounting
ISBN:9780357233306
Author:Maloney
Publisher:Cengage