The Bonus and Goodwill Methods of Recording the Admission of a New

question 39

Multiple Choice

The bonus and goodwill methods of recording the admission of a new partner will produce the same result if the:

• A) new partner's profit-sharing ratio equals his capital interest
• B) old partners' profit-sharing ratio in the new partnership is the same relatively as it was in the old partnership.
• C) both new partner's profit-sharing ratio equals his capital interest and old partners' profit-sharing ratio in the new partnership is the same relatively as it was in the old partnership are met
• D) none of these.

Recognize the implications of the bowed-out shape of the production possibilities frontier indicating increasing opportunity costs.

Understand the distinction between attainable and unattainable outputs as represented by the production possibilities frontier.

Understand the impact of real wage changes on the opportunity cost of household work.

Recognize the factors contributing to the increased labor force participation of married women in the U.S.

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