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A and B share profits and losses 60:40, and have capital accounts of $30,000 and $10,000,...

A and B share profits and losses 60:40, and have capital accounts of $30,000 and $10,000, respectively. C has agreed to invest $20,000 for a 40% interest in the new ABC partnership.

Using the Bonus Method, what are the partner’s capital balance in the new ABC partnership and the total balance amount?

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