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Andrew and Alex are partners. Andrew\'s capital balance in the partnership is $6

ID: 2595625 • Letter: A

Question

Andrew and Alex are partners. Andrew's capital balance in the partnership is $60,500, and Alex's capital balance $57,500. Andrew and Alex have agreed to share equally in income or loss. Andrew and Alex agree to accept Jeremy with a 30% interest. Jeremy will invest $31,500 in the partnership. The bonus that is granted to Jeremy equals:

Andrew and Alex are partners. Andrew's capital balance in the partnership is $60,500, and Alex's capital balance $57,500. Andrew and Alex have agreed to share equally in income or loss. Andrew and Alex agree to accept Jeremy with a 30% interest. Jeremy will invest $31,500 in the partnership. The bonus that is granted to Jeremy equals:

Explanation / Answer

Andrew 60,500 Alex 57,500 total capital 118,000 Add:jeremy's investment 31,500 total capital 149,500 Jeremy's share 149,500*30% 44850 thus the bonus granted to Jeremy is 44,850-31,500 13350 answer