Assume That the Capital of an Existing Partnership Is $90,000

question 33

Multiple Choice

Assume that the capital of an existing partnership is $90,000 and all existing assets reflect fair market values. If an incoming partner acquires a 40% interest in the partnership for $55,000, the bonus traceable to the incoming partner is

• A)$15,000
• B)$5,000
• C)$3,000
• D)$2,000

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Definitions:

Superordinate Categories

High-level classification groups that encompass more specific instances or members, based on common properties or characteristics.

Stereotyping And Prejudice

The process and practice of making oversimplified and generalized judgments about individuals or groups based on perceived characteristics, often leading to unfair biases.

Recategorization

The process of redefining or changing the classification of something, often to aid in understanding or grouping.

Altering Attitudes

The process of changing one’s own or another's stance, opinion, or feelings towards someone or something.