Answer the following statements true (T) or false (F)
1. Admission of a new partner, by contributing directly to the partnership, increases both assets and liabilities by the same amount.
2. When a new partner is admitted at a higher-than-book-value contribution, the existing partners will receive a bonus amount.
3. Irrespective of the original profit-and-loss-sharing ratio, the bonus received by existing partners—by admitting a new partner—will be allocated equally.
4. New partners will always be admitted to a partnership at a contribution equal to or greater than the book value of their interest.
5. When a partner sells his interest to another party, the journal entry simply credits the withdrawing
partner's capital account and debits the new partner's capital.
1. False
2. True
3. False
4. False
5. False
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A) Project managers. B) Potential team members. C) Top management. D) External stakeholders.
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