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A, B and C formed a partnership. A contributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that A will receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A?

A, B and C formed a partnership. A contributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that A will receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A, B and C formed a partnership. Acontributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that Awill receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A? Answer
Transcribed Image Text:A, B and C formed a partnership. Acontributed 600,000 cash, B contributed inventories costing 1,000,000 and with a fair value of 800,000 and C contributed equipment worth 2,000,000 with corresponding note payable of 1,400,000. If the partners agreed that Awill receive 40% ownership and B and C will get 30% each. What is the amount of bonus to A? Answer
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