Mathew,Patrick and Robin and have capital balances of $78,000,$125,000 and $90,000,respectively.As per the partnership agreement,Mathew gets a profit share of 2/9;Patrick gets 4/9;and Robin gets 3/9.Partnership agrees to pay $62,000 as final settlement to Mathew.How much bonus will Robin receive as a result of this transaction?
A)$8889
B)$6857
C)$7111
D)$9143

Question

Quizplus · Accepted Answer

The bonus to Robin is calculated based on the difference between Mathew's capital balance and the final settlement. Mathew's capital balance is $78,000, and he receives $62,000, resulting in a $16,000 difference. Robin's share of this difference is 3/9, which equals $5,333.33. However, the correct calculation should consider the total capital and the final settlement, leading to a bonus of $6,857 for Robin.

Mathew,Patrick and Robin and Have Capital Balances of $78,000,$125,000 and $90,000,respectively.As