The partnership of Mor and Osc is being dissolved, and the assets and equities at book value

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The partnership of Mor and Osc is being dissolved, and the assets and equities at book value and fair value and the profit- and loss-sharing ratios at January 1, 2016, are as follows:
The partnership of Mor and Osc is being dissolved, and

Mor and Osc agree to admit Tre into the partnership for a one-third interest. Tre invests $95,000 cash and a building to be used in the business with a book value to Tre of $100,000 and a fair value of $120,000.
REQUIRED
1. Prepare a balance sheet for the Mor, Osc, and Tre partnership on January 2, 2016, just after the admission of Tre, assuming that the assets are revalued and goodwill is recognized.
2. Prepare a balance sheet for the Mor, Osc, and Tre partnership on January 2, 2016, after the admission of Tre, assuming that the assets are not revalued.

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...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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...
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Advanced Accounting

ISBN: 978-0134472140

13th edition

Authors: Floyd A. Beams, Joseph H. Anthony, Bruce Bettinghaus, Kenneth Smith

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