ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Question
Chapter 15, Problem 15.12Q
To determine
New partners investment:a new partner acquires a share in
- The new partner investment equals the new partner’s proportional share in partnership’s book value.
- The new partner’s investment is more than the new partner’s proportion of partnership’s book value. This indicates that the partnership assets were undervalued or a unrecorded
goodwill exists. - The new partner’s investment is less than his proportional share in partnership book value. This suggests that the partnership assets were overvalued on its books or the new partner may be contributing goodwill in addition to other assets.
The case in which new partner’s capital credit is less than, more than or equal to the amount invested by him.
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Chapter 15 Solutions
ADVANCED FINANCIAL ACCOUNTING IA
Ch. 15 - Prob. 15.1QCh. 15 - Prob. 15.2QCh. 15 - Prob. 15.3QCh. 15 - Prob. 15.4QCh. 15 - Under what circumstances would a partner’s capital...Ch. 15 - Prob. 15.6QCh. 15 - Prob. 15.7QCh. 15 - Prob. 15.8QCh. 15 - Prob. 15.9QCh. 15 - Prob. 15.10Q
Ch. 15 - Prob. 15.11QCh. 15 - Prob. 15.12QCh. 15 - Prob. 15.13QCh. 15 - Prob. 15.14QCh. 15 - Prob. 15.15AQCh. 15 - Prob. 15.16BQCh. 15 - Prob. 15.1CCh. 15 - Prob. 15.2CCh. 15 - Prob. 15.3CCh. 15 - Prob. 15.1.1ECh. 15 - Prob. 15.1.2ECh. 15 - Prob. 15.1.3ECh. 15 - Prob. 15.1.4ECh. 15 - Multiple-Choice on Initial Investment [AICPA...Ch. 15 - Prob. 15.2ECh. 15 - Prob. 15.3ECh. 15 - Prob. 15.4ECh. 15 - Prob. 15.5ECh. 15 - Prob. 15.6ECh. 15 - Prob. 15.7ECh. 15 - Prob. 15.8.1ECh. 15 - Prob. 15.8.2ECh. 15 - Prob. 15.8.3ECh. 15 - Prob. 15.8.4ECh. 15 - Prob. 15.8.5ECh. 15 - Prob. 15.8.6ECh. 15 - Prob. 15.8.7ECh. 15 - Prob. 15.8.8ECh. 15 - Prob. 15.9ECh. 15 - Retirement of a Partner On January 1, 20X1, Eddy...Ch. 15 - Prob. 15.11PCh. 15 - Prob. 15.12PCh. 15 - Prob. 15.13PCh. 15 - Prob. 15.14PCh. 15 - Withdrawal of a Partner under Various Alternatives...Ch. 15 - Prob. 15.16.1PCh. 15 - Prob. 15.16.2PCh. 15 - Prob. 15.16.3PCh. 15 - Prob. 15.16.4PCh. 15 - Prob. 15.16.5PCh. 15 - Prob. 15.16.6PCh. 15 - Prob. 15.16.7PCh. 15 - Prob. 15.16.8PCh. 15 - Prob. 15.16.9PCh. 15 - Prob. 15.17PCh. 15 - Prob. 15.18PCh. 15 - Initial investments and Tax Bases [AICPA Adapted]...
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Similar questions
- Compute the partner's capital under bonus method.arrow_forwardCan a partnership assume liabilities as part of one of the partners contributions?arrow_forwardTrue or False The salary to partners and/or interest on their capital is still distributed in accordance with what has been agreed upon by the partners even if the net income is not adequate.arrow_forward
- 1. Describe how loans receivable from partners and loans payable to partners are treated in liquidation and why is that necessary? 2.arrow_forwardWhich one of the following item will be debited in profit and loss appropriation account? a. Interest on loan b. Interest on drawings c. Interest on deposits d. Bonus to partnersarrow_forwardAccounting for the admission of a new partner by purchase of a partner's interest will a b C O d not affect total assets, liabilities, and capital. increase total assets and total capital. increase total capital. decrease total capital.arrow_forward
- determine whether an allocation had a substantial economic effect on the partners, the courts have long inquired whether the allocation was reflected by an appropriate adjustment in the partners’ capital accounts?arrow_forwardIn a case where parties agreed on the conversion of the loan into shares in a partnership and yet the new loan remained despite the conversion, is there novation?arrow_forward
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