When a person is being admitted into a partnership that has goodwill, the amount of goodwill deemed to exist is a residual amount derived from the agreed-upon ownership percentages and profit and loss sharing ratios.

Question

Quizplus · Accepted Answer

Goodwill is typically calculated based on the difference between the business's market value and the fair value of its net identifiable assets, not solely on ownership percentages or profit and loss sharing ratios.

When a Person Is Being Admitted into a Partnership That