Sennett invests $40,000 for a 20 percent interest in a partnership that has capital totaling $150,000 after admitting Sennett. Which of the following is true?
A) The original partners received a bonus of $10,000
B) Sennett received a bonus of $10,000
C) Sennett's capital is $40,000
D) The original partners' capital in the business was $120,000 before admitting Sennett

Question

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The Answer of Sennett invests $40,000 for a 20 percent interest in a partnership that has capital totaling $150,000 after admitting Sennett. Which of the following is true?
A) The original partners received a bonus of $10,000
B) Sennett received a bonus of $10,000
C) Sennett's capital is $40,000
D) The original partners' capital in the business was $120,000 before admitting Sennett

Sennett Invests $40,000 for a 20 Percent Interest in a Partnership