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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 Solution When Nick\'s investment in the partnership is recorded, D = A bonus will be distributed to the old partners\' capital accounts which accounts for his ownership interest because of the past success of the partnership. I hope my solution solves your query. Regards. .

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. a bonus will be credited for the amount of cash he invested.
b. his capital account will be credited for more than the cash he invested.
c. his capital account will be credited for the amount of cash he invested.
d. a bonus will be distributed to the old partners' capital accounts.
Solution
When Nick's investment in the partnership is recorded, D = A bonus will be distributed to the
old partners' capital accounts which accounts for his ownership interest because of the past
success of the partnership.
I hope my solution solves your query.
Regards.

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