Answered

At Westonci.ca, we make it easy for you to get the answers you need from a community of knowledgeable individuals. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Get quick and reliable solutions to your questions from a community of experienced experts on our platform.

Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $64,000, and Martin's capital balance $61,000. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 25% interest. Black will invest $35,000 in the partnership. The bonus that is granted to Black equals:

Sagot :

abiolataiwo2015

Answer:

$5,000

Explanation:

Calculation for what The bonus that is granted to Block equals:

First step is to calculate the Total Partnership Equity using this formula

Total Partnership Equity = Groh's Capital + Jackson's Capital + Block's Investment

Let plug in the formula

Total Partnership Equity = $64,000 + $61,000 + $35,000

Total Partnership Equity= $160,000

Second step is to calculate the Equity for Block

Equity for Block = $160,000 * 0.25 =

Equity for Block =$40,000

Now let calculate what Bonus to Block equals using this email formula

Bonus to Block = Block's Capital - Cash Investment

Let plug in the formula

Bonus to Block = $40,000 - $35,000

Bonus to Block= $5,000

Therefore the bonus that is granted to Block equals: $5,000

Thanks for using our platform. We're always here to provide accurate and up-to-date answers to all your queries. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. Thank you for choosing Westonci.ca as your information source. We look forward to your next visit.