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

question 68

Multiple Choice

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


Definitions:

Lifestyle

The way in which a person or group lives, including patterns of social relations, consumption, entertainment, and dress.

Environment

The natural surroundings and conditions in which people, animals, and plants live and operate, or the sum of social and cultural factors influencing an organization.

Self-expression

The act of conveying one's thoughts, feelings, or ideas through verbal or non-verbal means to showcase individuality.

Impact

The strong effect or influence that an event, action, or decision has on something or someone.

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