Small Corp. and Big Corp. are equal partners in Medium Enterprises. The partnership has a net worth of $210,000, split 50/50 between the two corporations. Size Corp. has been asked to join the partnership. When the transaction is complete, all three partners will have an equal interest. To accomplish this structural change, Size Corp. will contribute $105,000 to the partnership treasury. This transaction will

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The original partners' interests will be diluted because the addition of Size Corp. as an equal partner means that each partner's share of the partnership will decrease from 50% to 33.33%.