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

Q

Consider the used-car market for the Ford Pinto described in class. There is now a surge...

Economics
Q

Briefly describe how each of the following factors influences the electrical resistivity of metals: i) Temperature....

Electrical Engineering
Q

Budgeted Income Statement and Supporting Budgets The budget director of Feathered Friends Inc., with the assistance...

Accounting
Q

A 5 F capacitor is charged fully by a 220V supply It is then disconnected...

Physics
Q

Number 1 From Lesson 9 01 Sets and Venn Diagrams U C x B Which...

Geometry
Q

Solve the following equation.6 sin ?-3=0,0 ??<2?What are the solutions in the interval 0 ??<2??

Basic Math
Q

In the make (insourcing) or buy (outsourcing) type of short-term decision for a product component,...

Accounting
Q

Grouper Corporation reports operating expenses of $99,900 excluding depreciation expense of $13,600, for...

Accounting
Q

Weller Company's budgeted unit sales for the upcoming fiscal year are provided below: The company's...

Accounting
Q

2 Brenna's Body Shop issued $200,000 of 30% bonds January 1, 2016. The bonds are...

Accounting
Q

The beta for Beltrand Industries is 1.50. Assuming that the nominal risk-free rate is 6.0%...

Finance
Q

needing help with the 2nd requirment.. Assume Avaya contracted to...

Accounting