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If a Is the Total Capital of a Partnership Before

Question 69

Multiple Choice

If A is the total capital of a partnership before the admission of a new partner, B is the total capital of the partnership after the admission of the new partner, C is the amount of the new partner's investment, and D is the amount of capital credited to the new partner, then there is:


A) goodwill to the new partner if B > (A + C) and D < C.
B) goodwill to the old partners if B = A + C and D > C.
C) a bonus to the new partner if B = A + C and D > C.
D) neither bonus nor goodwill if B > (A + C) and D > C.

Correct Answer:

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