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ther to form a general What are the 5. A company is beirn partnership, a limited

ID: 2588784 • Letter: T

Question

ther to form a general What are the 5. A company is beirn partnership, a limited liability partnership, or a limited liability company advantages and disadvantages of each of these legal forms? 6. What is an articles of partnership agreement, and what information should this document contain/ 7. What valuation should be recorded for noncash assets transferred to a partnership by one of the partners? 8. If a partner is contributing attributes to a partnership such as an established clientele or a particular expertise, what two methods can be used to record the contribution? Describe each method.

Explanation / Answer

5-8

Bonus method and goodwill method are the two method used to record the contribution.

Assets that are physically transferred into the business are recognized in bonus method

In goodwill method recognizes such contributions at the time of creation of partnership so that amount can be credited to partner’s account appropriately.