If a withdrawing partner receives assets worth more than the book value of his equity, then he receives a bonus.

Question

Quizplus · Accepted Answer

This statement is true. If the withdrawing partner receives assets worth more than the book value of his equity, it means that the value of the partnership has increased since the partner joined the partnership. As a result, the withdrawing partner is entitled to a bonus to reflect his contribution to the partnership's success.

If a Withdrawing Partner Receives Assets Worth More Than the Book