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Finch and Gerhardt Are Partners

Question 95

Multiple Choice

Finch and Gerhardt are partners.Finch's capital balance is $100,000 and Gerhardt's is $140,000.They agreed to share equally in profits and losses.Both partners agree to accept a third investor,Harrison as a new partner with a 25% interest in the partnership.Harrison intends to invest $90,000 in cash.The bonus that is granted to Finch and Gerhardt equals:


A) $3,750 each.
B) $5,000 each.
C) $10,000 each.
D) $15,500 each.
Finch and Gerhardt are partners.Finch's capital balance is $100,000 and Gerhardt's is $140,000.They agreed to share equally in profits and losses.Both partners agree to accept a third investor,Harrison as a new partner with a 25% interest in the partnership.Harrison intends to invest $90,000 in cash.The bonus that is granted to Finch and Gerhardt equals: A)  $3,750 each. B)  $5,000 each. C)  $10,000 each. D)  $15,500 each.

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