When the current market value of a partnership is greater than the recorded amounts of equity,the partners usually require the new partner to pay a bonus for joining.

Name: When the current market value of a partnership is greater than the recorded amounts of equity,the partners usually require the new partner to pay a bonus for joining.
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This is known as a goodwill payment, and it compensates the existing partners for the increased value of the partnership.

When the Current Market Value of a Partnership Is Greater