A new partner is admitted to an existing partnership. As a result of admission, the capital balances of incumbent partners increase while the contributed capital of the new partner is less than his capital credit. Which of the following is the best explanation? A. Revaluation of existing assets of old partnership has benn recognized B. Bonus has been given by the incumbent partners to the new partner C. Bonus has been given by the incumbent partners to the new partner and revaluation of existing assets of old partnership has been recognized. D. Bonus has been given by the incumbent partners and impairment loss of existing assets of old partnership has been recognized.
A new partner is admitted to an existing partnership. As a result of admission, the capital balances of incumbent partners increase while the contributed capital of the new partner is less than his capital credit. Which of the following is the best explanation? A. Revaluation of existing assets of old partnership has benn recognized B. Bonus has been given by the incumbent partners to the new partner C. Bonus has been given by the incumbent partners to the new partner and revaluation of existing assets of old partnership has been recognized. D. Bonus has been given by the incumbent partners and impairment loss of existing assets of old partnership has been recognized.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A new partner is admitted to an existing
A. Revaluation of existing assets of old partnership has benn recognized
B. Bonus has been given by the incumbent partners to the new partner
C. Bonus has been given by the incumbent partners to the new partner and revaluation of existing assets of old partnership has been recognized.
D. Bonus has been given by the incumbent partners and impairment loss of existing assets of old partnership has been recognized.
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