Samuel and Darci are partners. The partnership capital for Samuel is $50,000 and for Darci is $60,000. Josh is admitted as a new partner by investing $50,000 cash. Josh is given a 20% interest in return for his investment. The amount of the bonus to the old partners is

Question

Quizplus · Accepted Answer

The bonus to the old partners is calculated as follows:Bonus = (New partner's capital / New partner's interest) - (Old partners' capital / Old partners' interest)Bonus = (50,000 / 20%) - (110,000 / 80%)Bonus = 250,000 - 137,500Bonus = $18,000

Samuel and Darci Are Partners