Multiple Choice
Nick is admitted to an existing partnership by investing cash. Nick agrees to pay a bonus for his ownership interest because of the past success of the partnership. When Nick's investment in the partnership is recorded,
A) his capital account will be credited for more than the cash he invested
B) his capital account will be credited for the amount of cash he invested
C) a bonus will be credited for the amount of cash he invested
D) a bonus will be distributed to the old partners' capital accounts
Correct Answer:
Verified
Correct Answer:
Verified
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