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A, B and Catrice manage a law partnership. Each has capital of $120,000 and they share income equally. The partners will admit D as an
A, B and Catrice manage a law partnership. Each has capital of $120,000 and they share income equally. The partners will admit D as an equal partner for a payment of $140,000. Please calculate the impact of D's admission using both the bonus method and the goodwill method. If the bonus method is used, how much is the bonus, and who gets it? Where does the bonus come from? If the goodwill method is used, how much is the goodwill and who gets it? Bonus of $5,000 goes to each old partner; goodwill of $20,000 goes to each old partner. Bonus of $15,000 belongs to new partner; goodwill of $60,000 belongs to D. Bonus of $20,000 each belongs to original partners; goodwill of $15,000 each belongs to original partners. Bonus of $15,000 each belongs to original partners; goodwill of $20,000 each belongs to original partners
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