Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Harrison as a new partner with a 25% interest in the partnership. Harrison intends to invest P90,000 in cash. The bonus that is granted to Finch and Gerhardt equals Select the correct response: P15,500 each. P3,750 each.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They agreed to share
equally in profits and losses. Both partners agree to accept a third investor, Harrison as a new partner with a 25% interest
in the partnership. Harrison intends to invest P90,000 in cash. The bonus that is granted to Finch and Gerhardt equals
Select the correct response:
P15,500 each.
P3,750 each.
P10,000 each.
P5,000 each.
Transcribed Image Text:Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000 They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Harrison as a new partner with a 25% interest in the partnership. Harrison intends to invest P90,000 in cash. The bonus that is granted to Finch and Gerhardt equals Select the correct response: P15,500 each. P3,750 each. P10,000 each. P5,000 each.
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