Question
Hewlett and Martin are partners. Hewlett's capital balance inthe partnership is $59,000, and Martin's capital balance $56,000.Hewlett and Martin have agreed to share equally in income or loss.The existing partners agree to accept Black with a 20% interest.Black will invest $36,000 in the partnership. The bonus that isgranted to Hewlett and Martin equals:
A) $0, because Hewlett and Martin actually grant a bonus toBlack.
B) $3,600 each.
C) 1,847 to Hewlett; $1,800 to Martin.
D) $1,847 each.
E) $2,900 each.
