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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

Correct Answer:

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