When a New Partner Is Admitted into a Partnership and the New

question 3

Multiple Choice

When a new partner is admitted into a partnership and the new partner receives a capital credit less than the tangible assets contributed,which of the following explains the difference?
I.The new partner's goodwill has been recognized.
II.The old partners received a bonus from the new partner.

• A)I only
• B)II only
• C)Either I or II
• D)Neither I nor II

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Definitions:

Hostile Audience

A group of listeners or spectators who are antagonistic or unfriendly towards the speaker or presenter.

Facial Expression

The movement or position of the muscles beneath the skin of the face, serving as a primary means of conveying emotional states and reactions.

Panic

A sudden, overwhelming feeling of fear or anxiety that can result in extreme, often irrational behavior and physiological responses.

Basic Emotions

A set of emotions that are universally recognized and experienced across cultures, often described as including happiness, sadness, fear, disgust, anger, and surprise.