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Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices, and the capital balances of Smith and
Immediately prior to the admission of Abbott, the Smith-Jones Partnership assets had been adjusted to current market prices, and the capital balances of Smith and Jones were $59,900 and $64,900, respectively. If the parties agree that the business is worth $166,500, what is the amount of bonus that should be recognized in the accounts at the admission of Abbott? $41,700 $106,600 $101,600 $20,850
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