If a new partner invests in a partnership at book value and acquires a 1/4 interest in total partnership capital it indicates that a bonus was paid to the original partners.

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If a new partner is investing at book value, it means that the value of the partnership's assets and liabilities is being assessed and the new partner is paying for their share based on that evaluation. If the new partner is acquiring a 1/4 interest in total partnership capital, it does not necessarily indicate that a bonus was paid to the original partners. A bonus would only be paid if the new partner paid an amount greater than their share of the assessed value, resulting in the original partners receiving a portion of that excess payment as a bonus.

If a New Partner Invests in a Partnership at Book