A=The amount of tangible assets contributed by the new partner into the partnershipB=The amount of capital credited to the new partnerC=Total capital of the partnership before the admission of a new partnerD=Total capital of the partnership after the admission of a new partnerRefer 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
Answer: B
Business
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