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Assuming there are no differences between the fair value and book value of recorded assets, the new partners willingness to pay more than the proportionate
Assuming there are no differences between the fair value and book value of recorded assets, the new partners willingness to pay more than the proportionate book value of the new entity indicates
a. | Goodwill existed prior to the admission | |
b. | Assets are overvalued | |
c. | Existing partners' capital accounts should be debited. | |
d. | Liabilities were paid down prior to admission |
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