Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $61,500, and Martin's capital balance $58,500. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 30% interest. Black will invest $32,500 in the partnership. The bonus that is granted to Black equals:
A. $13,250.
B. $9150.
C. $4575.
D. $6625.
E. $0, because Black must actually grant a bonus to Hewlett and Martin.
Answer: A
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