Motts is admitted to a partnership with a 25% capital interest by a cash investment of $90000. If total capital of the partnership is $390000 before admitting Motts the bonus to Mock is

Question

Quizplus · Accepted Answer

The total capital after Motts' investment is $390,000 + $90,000 = $480,000. Motts' 25% interest implies he should have $120,000 (25% of $480,000). Since he invested $90,000, the bonus to Mock is $120,000 - $90,000 = $30,000.

Motts Is Admitted to a Partnership with a 25% Capital