Sue invests $10,000 for a one-fourth interest in a partnership in which the other partners have capital totaling $22,000 before admitting Sue. After distribution of the bonus, Sue's capital is:
A) $10,000.
B) $5,500.
C) $3,000.
D) $8,000.

Question

Quizplus · Accepted Answer

Sue's capital after the bonus distribution is $8,000 because the total capital after her investment is $32,000 ($22,000 + $10,000). A one-fourth interest means she should have $8,000 (1/4 of $32,000).

Sue Invests $10,000 for a One-Fourth Interest in a Partnership