The book-value approach of the bonus method does not directly recognize increases in asset values suggested by the consideration that the incoming partner pays.However, the method does indirectly recognize:

Question

Quizplus · Accepted Answer

The book-value approach of the bonus method adjusts the capital balances to indirectly recognize the increase in asset values suggested by the consideration paid by the incoming partner.

The Book-Value Approach of the Bonus Method Does Not Directly