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Dana Kimberly was admitted to partnership with a 22% ownership interest after investing $36000 cash. The partnership capital before the admission of Kimberly was $131000.
Dana Kimberly was admitted to partnership with a 22% ownership interest after investing $36000 cash. The partnership capital before the admission of Kimberly was $131000. Which of the following best describes the impact on the capital accounts from this transaction?
Kimberly will pay a bonus of $740 to the old partners.
Kimberly will pay a bonus of $1480 to the old partners.
Kimberly will receive a bonus of $740 from the old partners.
Kimberly will receive a bonus of $1480 from the old partners.
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