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Yes CoAnd No Co

Question 1

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Yes Co.and No Co.are equal partners in Maybe Enterprises.The partnership has a net worth of $210,000, split 50/50 between the two corporations.Decision Co.has been asked to join the partnership.When the transaction is complete, all three partners will have an equal interest.To accomplish this structural change, Decision will contribute $105,000 to the partnership treasury.This transaction will


A) dilute the original partners' interests.
B) increase the original partners' interests.
C) result in a capital gain for the partners.
D) result in a capital loss for the partners.

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