Pereira/Van Camp: Increase in Value of SP Business

Question 1

Van Camp: Business profits – increase in value of SP business

Answer 1

Van Camp: community receives FMV for SP owner spouse’s services to SP business; initial SP capital investment + remainder of increase in value goes to SP owner spouse.

Question 2

Pereira: Business profits – increase in value of SP business

Answer 2

Pereira: SP owner spouse receives SP capital investment plus reasonable rate of return (10 percent per yr); balance of increased value to the community.