Finney is admitted to a partnership with a 25% capital interest by a cash investment of $90,000. If total capital of the partnership is $390,000 before admitting Finney, the bonus to Finney is

Question

Quizplus · Accepted Answer

The total capital after Finney's investment is $390,000 + $90,000 = $480,000. Finney's 25% interest should be $480,000 * 25% = $120,000. Since Finney invested $90,000, the bonus to Finney is $120,000 - $90,000 = $30,000.

Finney Is Admitted to a Partnership with a 25% Capital