Small Corp

Small Corp.and Big Corp.are equal partners in Medium Enterprises.The partnership has a net worth of $210,000,split 50/50 between the two corporations.Size Corp.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,Size Corp.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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