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Accounting Assignment | Custom Assignment Help

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October 4th, 2019

Which of the following statements is true regarding goodwill that is provided for in the partnership agreement?

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The goodwill is ignored for purposes of a partner’s share of gain or loss.

The goodwill is taxable as capital gain.

The goodwill is taxable as ordinary income.

The goodwill will be prorated so that it can be ordinary or capital gain,  depending on the amount of partnership property.

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