If a new partner acquires partnership interest directly from the partners rather than from the partnership, a. no entry is required. b. the existing partnership is liquidated. c. the partnership assets should not be revalued because this type of transaction does not result to partnership dissolution. d. the existing partners’ capital accounts are reduced and the new partner’s capital account is increased.
If a new partner acquires partnership interest directly from the partners rather than from the partnership, a. no entry is required. b. the existing partnership is liquidated. c. the partnership assets should not be revalued because this type of transaction does not result to partnership dissolution. d. the existing partners’ capital accounts are reduced and the new partner’s capital account is increased.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 2MC: Any assets invested by a particular partner in a partnership ________. A. do not become a...
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If a new partner acquires partnership interest directly from the partners rather than from the partnership,
a. no entry is required.
b. the existing partnership is liquidated.
c. the partnership assets should not be revalued because this type of transaction does not result to partnership dissolution.
d. the existing partners’ capital accounts are reduced and the new partner’s capital account is increased.
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