Add to Chrome
✅ The verified answer to this question is available below. Our community-reviewed solutions help you understand the material better.
In a change in apartnership involving withdrawal of an existing partner and admission of a newpartner:
In a change in a
partnership involving withdrawal of an existing partner and admission of a new
partner:
revaluation gain is distributed to existing partner’s capital accounts
existing partners pay the new partner for a share of the goodwill
new partner pays cash for the revaluation gain due to all existing partners
new partner pays cash for the total goodwill
Get Unlimited Answers To Exam Questions - Install Crowdly Extension Now!