QUESTION 2 Shatta Whales has been in trading on her own account for many years. She decides to admit Shatta Bindles as a partner. For the purpose of ascertaining the amount which Shatta Bindles should pay for her share of goodwill, it was agreed that the total goodwill should be valued at three year's purchase of the simple average profits of the past five years. The profits had been as follows: Year Profit (GHS) 2014 2,819 2015 2,164 2016 3,310 2017 3,197 2018 2,985 Required: With reference to the above information; (a) Outline the steps in determining goodwill based on the 'Purchase of number of years' average net profit method', with specific emphasis on the simple average method (b) Ascertain the goodwill payable by Shatta Bindles based on the steps outlined in (a) above (c) Outline three (3) factors that contribute to goodwill.

Problem Solving 5 Adam, Eve and Abel are partners in Suave Swimsuits. Profits and losses are shared in the ratio of 5:3:2. On July 1, 2022, when their capital balances stood at P50,000, P25,000 and P30,000 respectively, they agree to admit Cain to the partnership. Answer the questions that follow assuming, Cain invests P45,000 cash in the partnership for a 30% interest. What is the capital balance of Abel after formation of the partnership? * Your answer What is the capital balance of Cain after formation of the partnership? * Your answer What is the capital balance of Adam after formation of the partnership? * Your answer What is the capital balance of Eve after formation of the partnership? * Your answer

hi i need help with this questions with the 3 question   Adams, Inc., acquires Clay Corporation on January 1, 2020, in exchange for $732,300 cash. Immediately after the acquisition, the two companies have the following account balances. Clay’s equipment (with a five-year remaining life) is actually worth $604,900. Credit balances are indicated by parentheses.     Adams   Clay   Current assets $ 326,000   $ 290,000   Investment in Clay   732,300     0   Equipment   781,900     526,000   Liabilities   (280,000 )   (170,000 ) Common stock   (350,000 )   (150,000 ) Retained earnings, 1/1/20   (1,210,200 )   (496,000 )     In 2020, Clay earns a net income of $62,700 and declares and pays a $5,000 cash dividend. In 2020, Adams reports net income from its own operations (exclusive of any income from Clay) of $193,000 and declares no dividends. At the end of 2021, selected account balances for the two companies are as follows:      Adams Clay Revenues $ (452,000 ) $…

Please help me on this question Thanks Chapter 11 -6 Five years ago Gerald invested $142,000 in a passive activity, his sole investment venture. On January 1, 2017, his amount at risk in the activity was $28,400. His shares of the income and losses were as follows: Year Income (Loss) 2017 ($42,600) 2018 (28,400) 2019 48,400 Gerald holds no suspended at-risk or passive activity losses at the beginning of 2017. If an answer is zero, enter "0". d. Assuming Gerald has $48,400 income in 2019, (and considering both at-risk and passive activity loss rules), what is the amount of Gerald's suspended passive activity losses at the end of 2019?

Question 9 Discuss the CGT consequences of these events for Nathan and Chemical Pty Ltd (4 marks). Include in your discussion the availability of the 50% discount. Nathan had a car that he acquired for $45,000 5 years ago. It was stolen in the current tax year, and insurance as a result gave Nathan $65,000 in compensation. Nathan, whose job was an industrial chemist, also entered into a restraint of trade with his ex-employer, Chemical Pty Ltd, to not work with any of their competitors for 3 years. Nathan was paid $300,000 for this (assume this did not constitute ordinary income and was also not assessable under s. 15-2). When the agreement lapsed it was not renewed.