Prepare a report on the accounting implications of the issues. When the accounting for an individual transaction has not been specified, you should indicate how it should be accounted for and the impact that the accounting would have had on the key metric(s).

Please base on the CPA Guidlines

On May 31, Year 7, SFC and an unrelated company, Oprahh Inc. (Oprahh), formed a partnership, Bestview. Oprahh contributed $40 million in cash. SFC contributed the assets of its TV production company, which had a carrying amount of $65 million. The $90 million value assigned to SFCs contribution may be adjusted if the net income of Bestview earned between July 1, Year 7, and June 30, Year 8, does not meet expectations. SFC has recorded a gain of $25 million. The partnership agreement states that SFC is permitted to withdraw the $40 million for its own use, and it has done so. As a result, Oprahh has a 45% interest in the partnership and SFC has the remaining 55% interest. The profits are split according to the ownership interests. Although all major operating and financing decisions are discussed by both parties, SFC has the final say in any contentious issues.