and make treatment of goodwill in different cases. Make accounting treatment of the revaluation of assets and liabilities and distribute the profit and loss on revaluation among the old partners. Make accounting treatment of unrecorded assets and liabilities Prepare capital Accounts‚ Cash A/c and Balance Sheet of the New firm Adjust the Partners‘ Capital Accounts Salient Points:1. Goodwill is the monetary value of business reputation. It is an intangible asset. 2. Goodwill may be of two types: a
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Six Flags Analysis of Goodwill ACCT 6610 Six Flags‚ Inc. is the largest regional theme park operator in the world. Currently Six Flags operates 18 parks in the US‚ one in Canada and one in Mexico. In the aggregate‚ Six Flags’ theme parks offer over 800 rides‚ including more than 120 roller coasters. The following questions pertain to Six Flags’ goodwill. To begin‚ obtain a copy of Six Flags‚ Inc. December 31‚ 2008 10-K‚ which was filed with the SEC March 11‚ 2009. A link to the report
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income $ 1‚600‚000 Revaluation writeoffs: Equipment $500‚000/5 (100‚000) Inventory (200‚000) Goodwill impairment loss (50‚000) Equity in net income of Safeco $ 1‚250‚000 Peerless’s entries for 2014: Investment in Safeco 8‚000‚000 Cash 8‚000‚000 Investment in Safeco 1‚250‚000 Equity in net income of Safeco 1‚250‚000 Cash 600‚000 Investment in Safeco 600‚000 Calculation of goodwill is as follows: Acquisition cost $ 8‚000‚000 Book value of Safeco (7‚000‚000) Excess of
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(J&J) and Questcor Pharmaceuticals the US companies to acquisition. This paper explains the best combination method of Johnson & Johnson for expanding the corporation through acquiring Questcor Pharmaceuticals. Johnson & Johnson pay $15 million in goodwill of Questcor Pharmaceuticals during acquisition. Moreover‚ it explains the reason behind the selection of combination method and the way to grow the business. It also analyzes the requirement of accounting for the combination method of business and
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In-Process R&D a. Calculation of goodwill: Acquisition cost $ 10‚000‚000 Fair value of noncontrolling interest 2‚000‚000 Total fair value 12‚000‚000 Book value of Saylor $ 6‚000‚000 Fair value – book value: Land 500‚000 IPR&D 1‚000‚000 7‚500‚000 Goodwill $ 4‚500‚000 Allocation of goodwill between controlling and noncontrolling interest: Total goodwill $ 4‚500‚000 Pennant’s goodwill: $10‚000‚000 – 80%(7‚500‚000) 4‚000‚000 Goodwill to noncontrolling interest $
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provision of the Partnership Act 1.1.1 Formation/ membership limits 1.1.2 Rights of partners 1.1.3 Obligations of partners 1.1.4 Dissolutions of partnerships Business/ Firm 1.1.5 Privileges of partners 1.2 Realignments 1.2.1 Treatment of goodwill in partnership Admission of new partners 1.2.2 Admission of new partners Retirement of partners 1.2.3 Retirement of partners 1.3 Dissolution of partnerships 1.3.1 Piece-meal Dissolutions of partnerships 1.3.2 All Partners liquid‚ no loss 1
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working congressional liaison for the Secretary of Agriculture. Wheeler returned to Oklahoma to run unsuccessfully for Congress in 1960. Two other members of the liaison staff‚ Earle Chesney and Homer Gruenther‚ had duties that were more of the “goodwill” nature‚ such as taking VIPs on tours of the White House. As a group‚ the congressionalists cast a more conservative shadow than other staff units‚ a notable division during the 1954 conflict with Senator McCarthy. Sherman Adams–Governor to everyone
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given by the new partner is known as goodwill. 2. Assets and liabilities are revalued because the entire profit and loss due to their revaluation is divided amongst the old partners in their old profits sharing ratio. The new partner should not share such profit or loss because it belongs to the period prior to his admission. 3. General Reserve A/c Dr. Profit & Loss A/c Dr. To old partner’s capital A/c (In old ratio) 4. When the circumstances premium for the goodwill in cash to the old partners privately
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understand its application. In this research‚ we will outline various concepts and definitions to business combinations and address some important issues such as reporting entity concept‚ determination of fair value of assets‚ nature and treatment of goodwill‚ fair value approach in determining the cost of business combinations. While doing this‚ we will keep in mind the major accounting practices applied for various issues related to Business Combinations in Australia. Introduction: ‘Growth’ is the
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have 370‚000 more potential customers as compared to non-halal competitors. Also‚ high quality packaging is used by Cinnabon to uphold a strong brand image. 3.2 Weaknesses- The franchisee is not able to grow the Cinnabon brand‚ own copyright and goodwill. Customer service may also vary based on the training given by the Franchisor. The Franchise fee and ongoing fee may also decrease profitability and workers will need to clock in longer hours to be profitable. It is also uncertain whether the Franchisor
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