Cherryhill and Hace Had Been Partners for Several Years, and They

question 23

Multiple Choice

Cherryhill and Hace had been partners for several years, and they decided to admit Quincy to the partnership.The accountant for the partnership believed that the dissolved partnership and the newly formed partnership were two separate entities.What method would the accountant have used for recording the admission of Quincy to the partnership?

• A) The bonus method.
• B) The equity method.
• C) The goodwill method.
• D) The proportionate method.
• E) The cost method.

---

Definitions:

Clean Water Act

A U.S. federal law aimed at regulating the discharge of pollutants into the nation's surface waters, including lakes, rivers, streams, and coastal areas.

Federal Government

The national government of a federation, which holds the authority to govern the entire country, distinct from state or local governments within the federation.

State Government

The governing body of a state in a federal system, responsible for local legislation, administration, and execution of state laws.

Swimming

The act of propelling oneself through water using the limbs, often considered both a recreational activity and a competitive sport.