Question: When the goodwill method is used and the book value acquired is less than the value of the assets invested, total implied capital is computed

When the goodwill method is used and the book value acquired is less than the value of the assets invested, total implied capital is computed by

A) multiplying the new partners capital interest by the capital balances of existing partners.

B) dividing the total capital balances of existing partners by their collective capital interest.

C) dividing the new partners investment by his (her) capital interest.

D) dividing the new partners investment by the existing partners collective capital interest.

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