When a New Partner Is Admitted to a Partnership Under

question 12

Multiple Choice

When a new partner is admitted to a partnership under the goodwill method, an original partner's capital account may be adjusted for

• A)a proportionate share of the incoming partner's investment.
• B)his or her share of previously unrecorded intangible assets traceable to the original partners.
• C)his or her share of previously unrecorded intangible assets traceable to the incoming partner.
• D)none of the above.

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