A bonus may be paid in all of the following situations except:
A. By remaining partners to a withdrawing partner if the recorded equity is understated.
B. By an existing partner to him or herself when in need of personal cash flow.
C. By a new partner when the current value of a partnership is greater than the recorded amounts of equity.
D. To a new partner with exceptional talents.
E. By a withdrawing partner to remaining partners if the recorded value of the equity is overstated.
Answer: B
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