Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. when a partnership purchases interest of a retirin

When a partnership purchases interest of a retiring partner at more than book value, there...

50.1K

Verified Solution

Question

Accounting

  1. When a partnership purchases interest of a retiring partner at more than book value, there must be:
  1. Bonus to remaining partners
  2. Bonus to remaining partners/negative asset revaluation
  3. Bonus to retiring partners
  4. Bonus to the retiring partner/positive asset revaluation
  1. When the investment of a new partner is below the new partners' capital balance and goodwill is not recorded, who will receive the bonus?
  1. The new partner
  2. The old partners in their new profit or loss ratio
  3. The old partners in their old profit or loss ratio
  4. Old and new partner in their new profit or loss ratio
  1. S1: The dissolution of a partnership occurs only when the partnership is terminating operations and going out of business. S2: Bonus paid to a new partner results in a reduction to the capital accounts of the existing partners in proportion to their capital ratio.
  1. S1 is false; S2 is true
  2. S1 is true; S2 is false
  3. Both statements are false
  4. Both statements are true

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Choose the correct answer. 1. What is the percentile rank of 60 in the distribution of N(60,...

Biology
1.2K views

For natural selection to cause evolutionary changes in a character in a population the character...

Physics
1.2K views

Using a long extension cord in which each conductor has a resistance 80 a bulb...

Physics
1.2K views

A proton of mass m moving with a speed v approaches a stationary proton that...

Physics
1.2K views

0 Starting from rest a body slides down a 45 inclined plane in twice the...

Basic Math
1.2K views

If the claim of researchers is that the mean score is more than 92, what...

Basic Math
1.2K views

For the polynomial below, -3 is a zero.g(x)=x + 5x + 16x + 30Express g...

Calculus
1.2K views

The region R in the xy plane is bounded by the graph of y x...

Algebra
1.2K views

5 f UW 6x 35 find UW 19 4x 20 W

Accounting
1.2K views

How is it that respected members of the community who have been very successful in...

Accounting
1.2K views

What is the difference between financial accounting and management accounting?........ ////////@/####

Accounting
1.2K views

You are provided with the following information for Sandhill Co, effective as of its April...