ADVANCED FINANCIAL ACCOUNTING IA
12th Edition
ISBN: 9781260545081
Author: Christensen
Publisher: MCG
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Chapter 15, Problem 15.2C
To determine
Admission of partner: changes in the membership of
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Students have asked these similar questions
When a new partner is admitted into a partnership and the new partner receives a capital credit greater than the tangible assets contributed, which of the following explains the difference?
I. The old partners' goodwill is being recognized.
II. The new partner's goodwill is being recognized
Select one:
a. II only
b. Both I and II
c. Either I or II
d. I only
In case of admission of a partner, the first adjustment that need to be prepared is??
A. Bank account
B. Profit and loss account adjustment
C. The revaluation of assets
D. Realization of income or loss
S1: In a partnership, at least one partner is required to be a/an limited partner in order to ensure partnership creditors will be paid and protected S2: Unpaid liabilities should be included in computing for the total loss attributed to the partners. *
A. Both statements are true
B. s1 True; S2 False
C. S2 True; S1 False
D. Both statements are false
S1: Joint Control is present if tow ore more parties have greater than 50% Control.S2: One Party has more than 50% in a joint arrangement *
A. Both statements are false
B. Both statements are true
C. S2 True; S1 False
D. s1 True; S2 False
S1: If the total contributed capital of THE partnership is greater than the
total agreed capital, it is possible that a goodwill be recognized or an undervaluation of asset occurred.S2: Noncash…
Upon learning differences in methods of admitting a new partner, which between purchase of interest and investment of assets would you prefer if you were: a) The incoming partner b) The existing partner
Justify by identifying the advantages and disadvantages of each method from each method from each partner’s point of view.
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
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- A new partner enters a partnership and goodwill is calculated and credited to the original partners. How is the specific amount of goodwill assigned to these partners?arrow_forward1. A partnership contract should always be prepared regardless of the amount or nature of the contribution. 2. All types of partnerships are subject to income tax. 3. A partner's contribution in the form of industry will require a debit to the account "Industry" 4. In the partnership books, there are as many capital and drawing accounts as there are partners. 5. A partner's contribution in the form of noncash asset should be recorded at its fair market value even if there is agreed capital. 6. A partnership is much easier and less expensive to organize than a corporation. 7. A newly organized partnership should always open a new set of books for its use. 8. All partnerships have general partners. 9. Each partner generally has the authority to enter into contracts which are binding upon the partnership. 10. The property invested in a partnership by the partner becomes the property of the…arrow_forwardRose and Yana formes a partnership. Rose contributed inventory with a fair market value that is lower than its book value. Yana contributed real estate with fair market value that is higher than its book value. At what amount should the partnership record each of the following assets? Inventory Real estate a. Book Value Book Value b. Fair Market Value Book Value c. Book Value Fair Market Value d. Fair Market Value Fair Market Value choose the correct answer and explain.arrow_forward
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