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

question 57

Multiple Choice

When a new partner is admitted into a partnership and the capital of the old partners decreases,which of the following explains the reason for the decrease?
I.Undervalued liabilities were written up to their fair values.
II.Undervalued assets were written up to their fair values.


Definitions:

Unwanted Discrimination

The unjust or prejudicial treatment of different categories of people or things, especially on the grounds of race, age, or gender, that is not desired or solicited.

Executive Exemption

A classification in labor law that exempts certain executives from overtime pay and minimum wage requirements.

Age Discrimination

The unfair treatment of individuals in the workplace based on their age, prohibited under various labor laws.

ADEA

The Age Discrimination in Employment Act (ADEA) is a federal law that aims to protect employees and job applicants 40 years of age and older from age-based discrimination in the workplace.

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