When a new person wishes to be admitted into an existing partnership that consists of two partners and wishes to obtain an equal share (1/3 share)of the new partnership,the amount that the new person must invest is required to be the average of the capital balances of the existing partners.

Question

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The amount a new partner must invest to obtain an equal share in a partnership is typically negotiated and may not necessarily be the average of the existing partners' capital balances. It depends on the agreed-upon valuation of the partnership and the terms set by the existing partners.

When a New Person Wishes to Be Admitted into an Existing