Which is true regarding admission of a new partner accounted for under the bonus method? * a. The total net assets of the new partnership would be the same as that of the old partnership. b. The new partner’s initial capital would be equal to his or her initial investment. c. Assuming that the recorded assets are properly valued, the net assets of the new partnership would be equal to the net assets of the old partnership plus the investment of the new partner. d. The old partners’ capital account would be the same.
Which is true regarding admission of a new partner accounted for under the bonus method? * a. The total net assets of the new partnership would be the same as that of the old partnership. b. The new partner’s initial capital would be equal to his or her initial investment. c. Assuming that the recorded assets are properly valued, the net assets of the new partnership would be equal to the net assets of the old partnership plus the investment of the new partner. d. The old partners’ capital account would be the same.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 10MC: How does a newly formed partnership handle the contribution of previously depreciated assets? A....
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Which is true regarding admission of a new partner accounted for under the bonus method? *
a. The total net assets of the new partnership would be the same as that of the old partnership.
b. The new partner’s initial capital would be equal to his or her initial investment.
c. Assuming that the recorded assets are properly valued, the net assets of the new partnership would be equal to the net assets of the old partnership plus the investment of the new partner.
d. The old partners’ capital account would be the same.
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