5. If one of the above goodwill methods were used, which one would be preferable? 6. What constructive comments would you have regarding the method by which profits and losses are allocated by the...

5. If one of the above goodwill methods were used, which one would be preferable?

6. What constructive comments would you have regarding the method by which profits and losses are allocated by the partnership?

Provide a response to each of Pape’s questions and assume that, based on average capital balances, profits and losses are allocated 50%, 25%, and 25% to Freeman, Thierfelder, and Pape, respectively.