The amount paid by the new partner on admission as a compensation for the reputation…

The amount paid by the new partner on admission as a compensation for the reputation built up by old partners is a

  • A.
    Bonus
  • B.
    Good will
  • C.
    Premium
  • D.
    Commission
Correct Answer: Option B
Explanation

Goodwill is the excess of the purchase consideration over the total value of an entity

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