Question
Your final essay is to give the best advise that you can to the company that you work for.You are an accountant at a partnership.The
Your final essay is to give the best advise that you can to the company that you work for.You are an accountant at a partnership.The partnership has four partners, and, according to the partnership agreement, all have an equal stake in the company.This partnership was approached by a foreign corporation that would like to acquire them by a stock acquisition.The partnership has no authorized stock, and the corporation does not want to pay US dollars for the partnership. The partnership is valued at $4,000,000 today.Reading the partnership agreement, you find that the partnership can be terminated at any time with the consent of the partners.They do not want to dissolve the partnership. The corporation very much wants to purchase the partnership and incorporate it. In your expansive knowledge of accounting, what would you suggest the partnership do, as well as the corporation to make this consolidation happen? The only solution involves consolidating the partnership and the corporation.How would you, the accountant, resolve this issue?
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