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| Topic: |
Business
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| Number of pages / Number of words: |
4 / 956 |
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Baaz should be consulted to see if he feels this product is worthless.
Again, the impression is that Chan is trying to decrease income and net assets to reduce the buy-out
Financial Accounting 3 [FA3]
Page 25 of 46
price. If the inventory is a major motivating factor, the buy-out agreement could be renegotiated to
allow for reduction of the price if the inventory doesn't move over the next five years...
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First, some inventory would be worth more than the book value paid to Baaz. Chan may
have to accept assets with market values below book value (the "bad") in order to get assets with
market value above book value (the "good"). Second, a payout of book value does not allow for
goodwill that the partnership has established...
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