Bill, George, and Anne are partners in the BGA Partnership. A difference in opinion exists among the partners as to how to account for Newt's admission as a new partner. The three present owners have the following positions:
Bill wants to use the bonus method.
George believes the goodwill method is the best.
Anne wants to revalue the existing tangible assets.
Prepare a memo discussing the three different methods of accounting for the admission of a new partner, including considerations of the effects on the partnership capital in the year Newt is admitted and on the capital balances in future years.
Writing Assignment Requirements:
Write a paper of 2-3 pages double-spaced in length, not counting the title and the reference page(s) and any Exhibit(s) or Appendices. Submissions in excess of 3 pages are acceptable.