Austin Invests $80,000 for a 20 Percent Interest in a Partnership

Multiple Choice

Austin invests $80,000 for a 20 percent interest in a partnership that has capital totaling $300,000 after admitting Austin.Which of the following is true?

A) The original partners received a bonus of $20,000.
B) Austin received a bonus of $20,000.
C) Austin's capital is $80,000.
D) The original partners' capital in the business was $240,000 before admitting Austin.