Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $64,000, and Martin's capital balance $61,000. Hewlett and Martin have agreed to share equally in income or loss. Hewlett and Martin agree to accept Black with a 25% interest. Black will invest $35,000 in the partnership. The bonus that is granted to Black equals:

A. $3,333.
B. $2,500.
C. $6,667.
D. $5,000.
E. $0, because Black must actually grant a bonus to Hewlett and Martin.


Answer: D

Business

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