pat, jean lou, and diane are partners with capital balances of $50,000, $30,000, and $20,000 respectively. these three partners share profits and losses of equally. for an investment of $50,000 cash (paid to the business), mary ann will be admitted as a partner with a 1/4 interest in capital and profits. based on this information, which of the following best justifies the amount of mary ann' investment? a. mary ann will receive a bonus from the other partners upon her admission to the partnership b. assets of the partnership were overvalued immediately prior to mary ann's investment c. the book value of the partnership's net assets was less than the fair value immediately prior to mary ann's investment d. mary ann is apparently bringing goodwill into the partnership, and her capital account will be credited for the appropriate amount
pat, jean lou, and diane are partners with capital balances of $50,000, $30,000, and $20,000 respectively. these three partners share
a. mary ann will receive a bonus from the other partners upon her admission to the
b. assets of the partnership were overvalued immediately prior to mary ann's investment
c. the book value of the partnership's net assets was less than the fair value immediately prior to mary ann's investment
d. mary ann is apparently bringing
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
