Keith and Jim are partners.Keith has a capital balance of $51,000 and Jim has a capital balance of $37,000.Bill invested $27,000 to acquire an ownership interest of 30%.Which of the following statements is true of this transaction?
A)Keith and Jim received a bonus of $2550 each.
B)Keith and Jim received a bonus of $3750 each.
C)Bill received a bonus of $5100.
D)Bill received a bonus of $7500.

Question

Quizplus · Accepted Answer

Bill received a bonus of $7500. The total capital of the partnership after Bill's investment is $51,000 + $37,000 + $27,000 = $115,000. Bill's ownership interest is 30%, so his capital balance should be $115,000 x 30% = $34,500. However, he invested $27,000, so he received a bonus of $34,500 - $27,000 = $7,500.

Keith and Jim Are Partners