Garr invests $20,000 in cash (admission by investment) in the Massey-Dix partnership to acquire a 1/4 interest. In this case
A) the accounting will be the same as a purchase of an interest.
B) the total net assets of the new partnership are unchanged from the previous partnership.
C) the total capital of the new partnership is greater than the total capital of the old partnership.
D) Garr's income ratio will automatically be 1/4.
Correct Answer:
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