Question

Hewlett and Martin are partners. Hewlett's capital balance inthe partnership is $57,500, and Martin's capital balance $54,500.Hewlett and Martin have agreed to share equally in income or loss.Hewlett and Martin agree to accept Black with a 30% interest. Blackwill invest $28,500 in the partnership. The bonus that is grantedto Black equals:

$8,430.

$13,650.

$4,215.

$0, because Black must actually grant a bonus to Hewlett andMartin.

$6,825.