Brown and Rubix are partners.Brown's capital balance in the partnership is $73,000 and Rubix's capital balance is $62,000.Brown and Rubix have agreed to share equally in income or loss.Brown and Rubix agree to accept Cabela with a 20% interest.Cabela will invest $41,500 in the partnership.The bonus that is granted to Brown and Rubix equals:
A)$3,100 each.
B)$6,200 each.
C)$35,300 in total.
D)$41,500 in total.
E)$0,because Brown and Rubix actually grant a bonus to Cabela.

Question

Quizplus · Accepted Answer

The bonus granted to Brown and Rubix is $3,100 each, calculated by the difference between Cabela's investment and the 20% interest in the new total capital.

Brown and Rubix Are Partners