Which of the following occurs if a withdrawing partner receives assets worth more than the book value of his or her equity?
A) an increase in the remaining partners' capital accounts
B) no change to the remaining partners' capital accounts
C) a premium to existing partners
D) a bonus to the withdrawing partner

Question

Quizplus · Accepted Answer

When a withdrawing partner receives assets worth more than the book value of his or her equity, it is considered a bonus to the withdrawing partner. This is because the partner is receiving more than the recorded value of their share in the partnership.

Which of the Following Occurs If a Withdrawing Partner Receives