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Partners Emily and Rachel agreed to admit Diana into the partnership. Before admission of Diana, the old partners have $500,000 and $750,000 capital balances and
Partners Emily and Rachel agreed to admit Diana into the partnership. Before admission of Diana, the old partners have $500,000 and $750,000 capital balances and share profits and losses in the ration 1:3. Diana is admitted by investing $250,000 for 1/4 interest in the new partnership. After one year of operation, the partnership is liquidated with $2,500,000 remaining cash for distribution to partners. As final settlement, Diana will receive?
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