Gary, Peter, and Chris and have capital balances of $26,000, $38,000, and $30,000, respectively. As per the partnership agreement, Gary gets a profit share of 2/9; Peter gets 4/9; and Chris gets 3/9. The partnership agrees to pay $20,000 as the final settlement to Gary. How much bonus does Peter receive as a result of this transaction? (Do not round intermediate calculations and round the final answer to the nearest dollar.)
A) $3429
B) $2571
C) $3333
D) $2667
A) $3429
Bonus = $26,000 - $20,000 = $6000
Profit share between Peter and Chris is 4:3
Peter's Share = $6000 × 4 / 7 = $3429
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