Question: When a new partner is admitted into a partnership and the purchase price is less than the BV of the new partner's capital balance, if

When a new partner is admitted into a partnership and the purchase price is less than the BV of the new partner's capital balance, if a bonus is recognized, the bonus is allocated to:

I. all the partners based their new profit-and-loss-sharing ratio. II. the original partners only based on their original profit and loss sharing ratio.

III. the new partner only.

a) I only

b) II only

c) II and III only

d) III only

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