Goodwill is taken into account in partnership when
Answer Details
Goodwill is taken into account in partnership when a new partner is admitted. Goodwill represents the value of a firm's reputation, brand recognition, and customer loyalty, and can be an important factor in determining a firm's overall value. When a new partner is admitted to a partnership, the existing partners may agree to include the value of the firm's goodwill in determining the new partner's capital contribution or in calculating the new partner's share of the profits. This is because the new partner will benefit from the firm's reputation and customer loyalty, just like the existing partners.