In the absence of other relevant data, when a new partner is admitted in an existing partnership through the acquisition of capital interest of incumbent partners, which is always true? Group of answer choices The partnership shall recognize goodwill arising from the admission of a new partner. The total capital of the partnership will not change despite the admission of a new partner.
In the absence of other relevant data, when a new partner is admitted in an existing partnership through the acquisition of capital interest of incumbent partners, which is always true? Group of answer choices The partnership shall recognize goodwill arising from the admission of a new partner. The total capital of the partnership will not change despite the admission of a new partner.
Chapter10: Partnership Taxation
Section: Chapter Questions
Problem 23MCQ
Related questions
Question
In the absence of other relevant data, when a new partner is admitted in an existing
Group of answer choices
The partnership shall recognize
The total capital of the partnership will not change despite the admission of a new partner.
The partnership shall recognize gain or loss as a result of the disposal of capital interest.
The total assets of the partnership will increase by the amount of the net proceeds of the disposal of capital interest.
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