Mazen purchases 50% of Ahmad capital interest in the partnership for $22,000 If the capital balance of Ahmad and nader are $40,000 and $30,000, respectively, the balance of Nader Capital following the purchase is:

Select one: a. 30,000 b. 22,000 c. 20,000 d. 40,000

When a new partner is admitted into a partnership and the new partner receives a capital credit greater than the tangible assets contributed, which of the following explains the difference?

I. The old partners' goodwill is being recognized.

II. The new partner's goodwill is being recognized

Select one: a. Both I and II b. I only c. II only d. Either I or II