Sarah and Jane formed a partnership with capital of $200,000 and $126,000,respectively.Peter contributed $85,000 to acquire an ownership interest of 12% in the new partnership.How much is the total bonus for the existing partners?

Question

Quizplus · Accepted Answer

The total capital after Peter's contribution is $411,000 ($200,000 + $126,000 + $85,000). Peter's 12% interest should be $49,320 (12% of $411,000). Since Peter contributed $85,000, the bonus to existing partners is $85,000 - $49,320 = $35,680.

Sarah and Jane Formed a Partnership with Capital of $200,000