When the new partner invests some intangible asset, such as business acumen or an established clientele, it is possible to have a bonus credited to the new partner.This bonus may be viewed as:

Question

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The bonus credited to the new partner is a cost incurred to acquire the intangible asset they bring to the partnership, which is their business acumen or established clientele. This cost is reflected in the Goodwill account on the balance sheet, which represents the value of the business beyond its tangible assets.

When the New Partner Invests Some Intangible Asset, Such as Business