Hewlett and Martin are partners. Hewlett\'s capital balance in the partnership i

Question

Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $64,000, and Martin's capital balance $67,000. Hewlett and Martin have agreed to share equally in income or loss. The existing partners agree to accept Black with a 20% interest. Black will invest $35,000 in the partnership. The bonus that is granted to Hewlett and Martin equals:

a. $900 each.

b. $1,500 each.

c. $600 each.

d. 600 to Hewlett; $900 to Martin.

e. $0, because Hewlett and Martin actually grant a bonus to Black.

Explanation / Answer

$0. Because Hewlett and Martin actually grant a bonust to black.

However bonus amount is not given in question. How can we decide what amount to be given to whom ?

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