Julie Anne Gaskill is an oral and maxillofacial surgeon in Bowling Green, Kentucky. Her medical practice is

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Julie Anne Gaskill is an oral and maxillofacial surgeon in Bowling Green, Kentucky. Her medical practice is a sole proprietorship consisting of her as the sole surgeon, with office staff. She sees every patient, exercises all professional judgment and skill, and manages the business. When Gaskill and her spouse, John Robbins, initiated divorce proceedings in a Kentucky state court, her accountant estimated the value of the practice at $221,610, excluding goodwill. Robbins’s accountant estimated the value at $669,075, including goodwill. Goodwill is the ability or reputation of a business to draw customers, get them to return, and contribute to future profitability. How can a sole proprietor’s reputation, skill, and relationships with customers be valued? Could these qualities be divided into “enterprise” and “personal” goodwill, with some goodwill associated with the business and some solely due to the personal qualities of the proprietor? If so, what might comprise each type? Is this an effective method for valuing Gaskill’s practice? Discuss.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
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Business Law Today The Essentials

ISBN: 978-0324786156

9th Edition

Authors: Roger LeRoy Miller, Gaylord A. Jentz

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