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D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing $25,000 in cash directly to the business. The goodwill method
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D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing $25,000 in cash directly to the business. The goodwill method is used to record this transaction.
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Aramis decides to retire and leave the partnership. An independent appraisal of the business and its assets indicates a current fair value of $400,000. Goodwill is to be recorded. Aramis will then be given the exact amount of cash that will close out his capital account.
D'Artagnan is allowed to become a partner with a 10 percent ownership interest by contributing $25,000 in cash directly to the business. The goodwill method is used to record this transaction.
Aramis decides to retire and leave the partnership. An independent appraisal of the business and its assets indicates a current fair value of $400,000. Goodwill is to be recorded. Aramis will then be given the exact amount of cash that will close out his capital account.
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