RESEARCH PAPER

Research Report (ACCT421)

Partnership & Consolidation

Note:

1) There are TWO cases in Research Report. You need to complete both cases to get the full points.

2) Length of the report: 4 ~ 6 pages for both cases in total (NOT 4~6 pages for each case). You can include the cover

page, the abstract page, and/or the reference page in your report. However, only one of those pages can be counted as

the total pages.

3) Format: Word or PDF, fond 12, double space, with 1-inch margin each side.

4) You are welcome to cite some sentences/opinion from the publication in your report but remember to cite them in a

correct way, e.g., APA 5th.

5) More details of the research report can be found at the end of the course syllabus.

Case I:

You have been engaged to do the accounting for the termination and liquidation of the LMN partnership. L has requested

an immediate distribution of cash from the partnership that is being questioned by the other partners. Although L currently

has a positive balance in his capital account, M and N are concerned that this might change as the liquidation process

unfolds. They argue that L should wait before receiving a cash distribution. All of the partners would like you to explain

how it is possible that they might develop a deficit in their capital account during the liquidation process.

Instruction:

Do some research and explain how a positive capital account balance could develop into a deficit balance during the

partnership liquidation process.

Case II:

On 1/31/2018, Hershey Company acquired Amplify Snack Brands, Inc. its largest business acquisition to date.

Instruction:

Access to Hershey’s 2018 financial statements and media coverage near the time of the acquisition, answering the

following questions regarding the acquisition.

a) Why did Hershey acquire Amplify Snack Brands? b) How will Hershey account for Amplify’s cash acquired in the business combination? c) What amount of goodwill did Hershey recognize in the combination? Prepare a schedule that computes the goodwill

recognized in the acquisition as the differences between the consideration transferred for Amplify and the fair values

of the individually identified assets and liabilities acquired.

d) How did Hershey determine the fair values of Amplify’s assets? e) What were the acquisition-related costs Hershey incurred regarding the combination, and how were these costs

accounted for?

f) How did Hershey report the Amplify acquisition in its statement of cash flows?