Parntership Help

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  • Super Mom
    Senior Member
    • Jun 2007
    • 1151

    #1

    Parntership Help

    My experience with Partnerships is very limited. I have a situation where a company "bought out" a partner. This partner had a negative equity account on the balance sheet but stood to make handsome profits in the future. The "buy out" has already been done and assessed by this financial company. I'm thinking from the business standpoint, is this an expense or an adjustment to equity?
  • Super Mom
    Senior Member
    • Jun 2007
    • 1151

    #2
    Upon research, I am getting that the actual buyout (not associated expenses) is capitalized like an asset? Is that correct?

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