16. Which of the following statements is correct pertaining to the various terminologies used in Dissolution? Group of answer choices Contributed Capital is the new capitalization of the new and old partners which may be equal to, less than or more than the actual capital contributed by the partner(s). There is a downward asset revaluation if Total Agreed Capital is greater than Total Contributed Capital. There is an upward asset revaluation if Total Contributed Capital is less than Total Agreed Capital. Agreed Capital is the actual investments or contributions of the new and old partners. 17. The following statement describes the Admission of a new partner by purchase of interest EXCEPT: Group of answer choices There is no increase in total assets and no increase in total partners' equity. Capital interest of the selling partner must be sold at an amount greater than the amount of the capital interest of the selling partner. Any gain or loss incurred in the transaction is considered a personal gain or loss of the selling partner. Payment of incoming partner is given to selling partners not to the partnership. 18. Statement I - The Capital Adjustment account is used to minimize prorating the effect of the revaluation entries to the capital accounts of the original partners every time a revaluation or adjusting entry is recorded. Statement II - The Capital Adjustment account is ultimately closed to the capital accounts of the partners using their new profit and loss ratio. Group of answer choices Both Statements I & II are correct. Both Statements I & II are incorrect. Only Statement II is correct. Only Statement I is correct. 19. In admission of a new partner, there is a need to update the capital balances of the partners. The first step is determining the profit share of each partner from the last statement of financial position date to dissolution date. This first step involves the following EXCEPT: Group of answer choices the partners' drawing accounts were closed to partners' capital accounts the Income Summary account is closed to the partners' drawing account all income and expense accounts were already closed to the Income Summary account using the Income Summary account in revaluing or adjusting partnership assets and liabilities 20. Which of the following DOES NOT give rise to partnership dissolution? Group of answer choices Change in civil status of a partner Transfer of full interest from one existing partner to another existing partner Admission of a new partner by purchase of interest Incapacity of a partner 21. If an individual acquires an interest in existing partnership and paid for more than the carrying value of such interest to an existing partner, the entry is Group of answer choices debit the capital account of the existing partner and credit the capital account of the new partner for the amount paid debit the capital account of the existing partner and credit the capital account of the new partner for the amount of the capitalization acquired debit cash and credit the capital account of the new partner and the drawing account of the existing partner for the difference debit the drawing account of the existing partner and credit the capital account of the new partner 22. Which of the following occur(s) every time a new partner is admitted to a partnership? Group of answer choices Dissolution, liquidation, and termination Dissolution and liquidation Dissolution and termination Dissolution