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Son and Don are partners who share profits and losses equally. Son and Don have capital balances of $50,000 and $40,000, respectively. Assume Ron is
Son and Don are partners who share profits and losses equally. Son and Don have capital balances of $50,000 and $40,000, respectively. Assume Ron is admitted to the partnership by investing $60,000 in cash in exchange for a one-third partnership interest If the difference between Rons investment and his recorded partnership equity is considered a bonus to the existing partners, the following amount will be credited to Rons capital account:
a. $50,000
b. $60,000
c. $30,000
d. None of the above is correct.
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