Hansen and Fleming are partners and share equally in income or loss. Hansen’s current capital balance in the partnership is $125,000 and Fleming’s is $124,000. Hansen and Fleming agree to accept Black with a 20% interest. Black invests $75,000 in the partnership. The bonus granted to Hansen and Fleming equals a. $13,000 each. b. $5,100 each. c. $4,000 each. d. $5,285 to Hansen; $4,915 to Fleming. e. $0; Hansen and Fleming grant a bonus to Black.
Hansen and Fleming are partners and share equally in income or loss. Hansen’s current capital balance in the partnership is $125,000 and Fleming’s is $124,000. Hansen and Fleming agree to accept Black with a 20% interest. Black invests $75,000 in the partnership. The bonus granted to Hansen and Fleming equals a. $13,000 each. b. $5,100 each. c. $4,000 each. d. $5,285 to Hansen; $4,915 to Fleming. e. $0; Hansen and Fleming grant a bonus to Black.
Chapter15: Partnership Accounting
Section: Chapter Questions
Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...
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Hansen and Fleming are partners and share equally in income
or loss. Hansen’s current capital balance in the partnership
is $125,000 and Fleming’s is $124,000. Hansen and
Fleming agree to accept Black with a 20% interest. Black
invests $75,000 in the partnership. The bonus granted to
Hansen and Fleming equals
a. $13,000 each.
b. $5,100 each.
c. $4,000 each.
d. $5,285 to Hansen; $4,915 to Fleming.
e. $0; Hansen and Fleming grant a bonus to Black.
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