Meyers is considering investing in one of several existing partnerships and is attempting to consider the price to be paid for a partnership interest. In addition to investing cash, Meyers would be contributing a piece of land that has a fair market value of $50,000. The existing partnerships are characterized as follows:

1. Determine the amount of consideration that Meyers should have to convey in order to acquire an interest in each of the partnerships.
2. Assume that in addition to the land Meyers was asked to convey cash of $4,000, $60,000, and $15,000 to partnerships A through C, respectively. Determine the amount of goodwill to be recorded assuming that all assets are adjusted to fair value. Indicate to whom the goodwill is traceable.

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Partnershi Total assets at: Book value Fair market value (excluding good will).... . . . . . . .. . . . . . . $500,000 $600,000 $800,000 450, 000 725,000 850,000 Liabiliies at book value and fair market value Accounts payable Bank loans Notes payable to partners.... Other 120,000 150,000 300,000 200,000 120,000 200,000 49,500 40,000 58,000 20% 100,000 Interest to be acquired by new partner: In capital . . In profit and losses 30% 25% 25% 25% 20%