If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted to decrease in the capital balance of remaining partners, which is correct? a. The retiring partner receives bonus from remaining partners b. An impairment loss is recognized before the retirement c. Revaluation surplus is recognized before the retirement d. The retiring partner gives bonus to the remaining partner

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter21: Partnerships
Section: Chapter Questions
Problem 5BCRQ
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If a partner who retired from the partnership receives less than the capital balance before retirement which also resulted to decrease in the capital balance of remaining partners, which is correct?

a. The retiring partner receives bonus from remaining partners

b. An impairment loss is recognized before the retirement

c. Revaluation surplus is recognized before the retirement

d. The retiring partner gives bonus to the remaining partner

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