ADVANCED ACCOUNTING
ADVANCED ACCOUNTING
12th Edition
ISBN: 9780357671221
Author: FISCHER
Publisher: CENGAGE L
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Chapter 14, Problem 14.2.3P
To determine

Concept Introduction:

Liquidation of partnership refers to the shutting of the firm, i.e., putting end to the partnership business. This can be due to death of any partner or on closure of the business or any other reason. Sometimes, the liquidation takes place for intializing new business entity with new partners.

The contribution required to be made by the new partner D foracquisition of 25% interest in the partnership considering the fact that the assets are overstated by $25,000 .

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