When a new person purchases the partnership interest of an existing partner,which of the following is TRUE?
A)The newly admitted partner will assume the same capital balance of the old partner regardless of the amount paid.
B)The partnership will record either a gain or a loss if the amount paid is higher or lower than the existing partner's capital account balance.
C)The amount paid for the partnership interest is recorded on the partnership books.
D)The purchase price is determined by the balance in the existing partner's capital account.

Question

Quizplus · Accepted Answer

The Answer of When a new person purchases the partnership interest of an existing partner,which of the following is TRUE?
A)The newly admitted partner will assume the same capital balance of the old partner regardless of the amount paid.
B)The partnership will record either a gain or a loss if the amount paid is higher or lower than the existing partner's capital account balance.
C)The amount paid for the partnership interest is recorded on the partnership books.
D)The purchase price is determined by the balance in the existing partner's capital account.

When a New Person Purchases the Partnership Interest of an Existing