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| | Partnership Investing |
 | | When a new partner buys her interest from the old partners (doesn't invest into the partnership but makes payment directly to the old partners), the implied goodwill is determined by considering the amount the new partner is paying. |
 | | So if the total value is $120,000 and the old capital of $60,000 plus the new investment of $50,000 only total to $110,000, the difference between the $120,000 and the $110,000 equals goodwill of $10,000. |
 | | So if the total value is $100,000 and the old capital of $40,000 plus the new investment of $50,000 only total to $90,000, the difference between the $100,000 and the $90,000 equals goodwill of $10,000. |
| www.cord.edu /faculty/bfoss/partinvest.html (383 words) |
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