) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is a. bonus to old partners b. bonus to new partner c. no bonus to either new or old partners d. bonus to both new and old partners
) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is a. bonus to old partners b. bonus to new partner c. no bonus to either new or old partners d. bonus to both new and old partners
Chapter20: Corporations And Partnerships
Section: Chapter Questions
Problem 21DQ
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Question
1) When the net assets of the partnership are fairly valued and the amount invested by the incoming partner is equal to the interest he acquires, then it is implied that there is
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a. bonus to old partners |
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b. bonus to new partner |
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c. no bonus to either new or old partners |
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d. bonus to both new and old partners |
2) When a partner withdraws from the business,
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a) a new partnership is automatically formed |
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b) the original partnership continues |
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c) a new partner is admitted to the partnership |
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d) the partnership operations ceases |
3) A partner who withdraws his interest at carrying amount receives assets
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a) above his capital interest |
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b) less than his capital interest |
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c) with an indeterminate value |
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d) equal to his capital interest |
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