One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%. From her resignation, Nicki was paid $80 million to settle her holdings. The partners' total equity before the recognition of goodwill on Nicki's exit was $300 million. However, when Nicki left, the remaining partners' capital, excluding her share in goodwill, totaled $280 million. So how much goodwill does the company approve?
One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%. From her resignation, Nicki was paid $80 million to settle her holdings. The partners' total equity before the recognition of goodwill on Nicki's exit was $300 million. However, when Nicki left, the remaining partners' capital, excluding her share in goodwill, totaled $280 million. So how much goodwill does the company approve?
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter18: Comparative Forms Of Doing Business
Section: Chapter Questions
Problem 15P
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Transcribed Image Text:One of the members in the fellowship resigned, Nicki. Nicki's ownership in profit and loss is 25%.
From her resignation, Nicki was paid $80 million to settle her holdings. The partners' total equity
before the recognition of goodwill on Nicki's exit was $300 million. However, when Nicki left, the
remaining partners' capital, excluding her share in goodwill, totaled $280 million. So how much
goodwill does the company approve?
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