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Under the
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a. |
declines in asset values prior to new partner admission are recorded, but not asset appreciation. |
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b. |
the total capital of the new |
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c. |
a new partner’s capital balance may be less than his or her contribution. |
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d. |
All of the above. |
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- How does a newly formed partnership handle the contribution of previously depreciated assets? A. continues the depreciation life as if the owner had not changed B. starts over, using the contributed value as the new cost basis C. shortens the useful life of the asset per the partnership agreement D. does not depreciate the contributed assetIf an existing partner withdraws from a partnership which is true a. his or her interest may be sold to the partnership or an individual partner. b. the consideration received for that partner's interest may suggest the existence of undervalued existing assets and/or goodwill. c. either the bonus or the goodwill method may be used to record the transaction if the partnership acquires the withdrawing partner's interest. d. all of the aboveIf the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: Undervaluation of Assets Goodwill Overvaluation of Assets All of the choices
- If the total contributed capital of the partnership is greater than the total agreed capital, which of the following may arise: a.) Undervaluation of Assets b.) Goodwill c.) Overvaluation of Assets d.) All of the choicesWhich of the following statements is correct when a new partner is admitted to an existing partnership by purchasing a portion of a capital interest of an existing partner? a. The partnership will recognize gain or loss in the transfer of capital from one partner to another partner. b.The partnership is not dissolved by the admission of a new partner by purchase. c.It will result to revaluation or impairment of existing assets of the partnership. d. It will just result to credit to capital of newly admitted partner with corresponding debit to capital of the selling partnerWhich of the following transactions shall not affect the capital balance of a partner? A. Share of a partner in the partnership’s net loss. B. Receipt of bonus by a partner from another partner based on agreement. C. Advances made by the partnership to a partner. D. Additional investment by a partner to the partnership.
- How does a newly formed partnership handle the contribution of previously depreciated assets?In a partnership liquidation, a loss from sale of non cash assets is A.Allocated to the partner with the highest capital balance B.Allocated to the partnership liabilities C.Allocated to the partners based on their capital balances D.Allocated to the partners based on their profit and loss sharing ratioIn a partnership liquidation, a gain from the sale of assets is allocated to the: a. Payment of partnership liabilities b. Partner with the lowest capital balances first c. Partners based on their capital balances d. Partners based on their profit and loss ratio
- In admitting new partners, assets contributed by partners are recorded at their replacement value. Why is that?Which of the following transactions shall not affect the capital balance of a partner? Share of a partner in the partnership’s net loss. Receipt of bonus by a partner from another partner based on agreement. Advances made by the partnership to a partner. Additional investment by a partner to the partnership.1. When a property other than Cash is invested in a partnership, at what amount should the noncash property credited to the contributing partner’s capital account?A. Original cost of the assets during acquisitionB. Assessed value of the property at the date of contributionC. Fair market value at the date of contributionD. Net book value at the date of contribution 2. Which of the following partners are not liable in case of partnership losses but is liable for partnership debts to the extent of their personal assets?A. Capitalist partnerB. Nominal partnerC. Industrial partnerD. Limited partner 3. Failure to stipulate on how profit and loss de divided among partners, it should be -A. in proportion to what has been contributedB. equally dividedC. settled in the court of lawD. by other legal means agreeable among partners Kindly asnswer the questions correctly by choosing a letter. Thank you