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Kelly Invests $40,000 for a 10 Percent Interest in a Partnership

Question 85

Multiple Choice

Kelly invests $40,000 for a 10 percent interest in a partnership that has total capital of $300,000 after admitting Kelly. Which of the following is true?


A) Kelly's capital is $26,000
B) The original partners' capital in the business was $270,000 before admitting Kelly
C) Kelly received a bonus of $10,000
D) The original partners received a bonus of $10,000

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