Answer the following true or false for each:

22. Under the goodwill method, if the partnership acquires a partners interest at more than book value, goodwill can be recorded at either the amount traceable to the withdrawing partners capital or the amount traceable to the entire entity.

23. In a general partnership, all partners have the ability to enter into binding contracts (on the partnership) related to the partnership business purpose.

24. If a partners capital account becomes negative (a DR balance), they are usually required to contribute additional assets to the partnership.

25. If a partner in a general partnership is unable to restore a negative balance in their capital account, it will be viewed as a loss and allocated to the remaining general partners.

26. Partners can receive amounts in liquidation before all partnership assets are liquidated.

27. By assuming that non-cash assets will be result in total losses (until actually liquidated), a partnership can usually avoid paying too much to the partners while making an installment liquidation.