In your reading this week, you learned about the accounting and financial reporting procedures associated with partnerships, including formation, operation, liquidation, and changes in membership. In this discussion, you will have the opportunity to debate issues of accounting at the time of dissolution and the investment of a new partner in the partnership for more than the proportionate book value of the investment.

Assume the following three alternatives:

Recognize goodwill

Revalue assets

Use the bonus method

In your posting, address the following:

Recommend one of these methods over the others.

Explain the advantages associated with the approach that you have chosen.

Provide counterpoints to any disadvantages or negatives associated with your selected method.