Sarah and Jane formed a partnership with capital contributions of $210,000 and $123,000,respectively.Peter contributed $86,000 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

Peter will get an ownership interest of 12% of ($210,000 + $123,000 + $86,000)
= 0.12 × $419,000 = $50,280.
Total bonus for the existing partners = $86,000 - $50,280 = $35,720

Sarah and Jane Formed a Partnership with Capital Contributions of $210,000