Sarah and Jane formed a partnership with capital contributions of $210,000 and $123,000, respectively. Peter contributed $86,000 to acquire an ownership interest of 12% in the new partnership. How much is the total bonus for the existing partners?

A) $86,000
B) $35,720
C) $50,280
D) $17,860


B) $35,720
Explanation: Peter will get an ownership interest of 12% of ($210,000 + $123,000 + $86,000)
= 0.12 × $419,000 = $50,280.
Total bonus for the existing partners = $86,000 - $50,280 = $35,720

Business

You might also like to view...

Lars Sorenson is a college student who needs to purchase a suit for job interviews. In the past his father has helped him buy suits. This time, he is the sole decision maker and is paying for the $450 suit with money he earned at his part-time job. Lars is concerned about good fit and good value, so he visits several stores before making his purchase. For Lars, this situation seems to be one of

A. routinized response behavior. B. adoption purchasing. C. limited problem solving. D. extensive problem solving. E. low-involvement purchasing.

Business

On October 1, 20X3, Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock. On that date, the book values and fair values of Stick's recorded assets and liabilities were as follows: Book ValueFair ValueCash and Receivables$75,000  $75,000  Inventory 155,000   160,000  Buildings and Equipment (net) 260,000   320,000  Liabilities (150,000)  (150,000) Net Assets$340,000  $405,000  Based on the preceding information, the differential implicit in this acquisition is

A. $0. B. $65,000. C. $45,000. D. $110,000.

Business

Over 70% of the 25 biggest credit card issuers do not charge annual fees

Indicate whether this statement is true or false.

Business

________ is a research technique whereby consumers are asked to generate an exhaustive list of things that bother them or difficulties they encounter when using a product or service.

A. Perceptual mapping B. Market profiling C. Market positioning D. Bait-and-switch modeling E. Problem detection

Business