-Refer to the above information.Which statement below is correct if a new partner's goodwill is recognized upon contributing assets into the partnership?

Question

-Refer to the above information.Which statement below is correct if a new partner's goodwill is recognized upon contributing assets into the partnership? A)B = A and D > C + A B)B < A and D < C + A C)B > A and D = C + A D)B > A and D > C + A

Quizplus · Accepted Answer

When a new partner's goodwill is recognized, the value of the partnership (D) increases beyond the sum of the existing capital (C) and the new partner's contribution (A), indicating D > C + A. Additionally, the new partner's capital account (B) is greater than their contribution (A), indicating B > A.

-Refer to the Above Information