Caine, a new partner in the ABC Partnership, has invested $12,000 for a one-third interest in a

Question:

Caine, a new partner in the ABC has invested $12,000 for a one-third interest in a with capital of $21,000 before Caine's admission. What is the ABC Partnership's implied fair value? If the partners agree to recognize for the difference between the book value and fair value, present the entries the ABC should make upon Caine's admission.

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Partnership
A legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...