Answered: The amount of the bonus to the old…

Business

Accounting

The amount of the bonus to the old partners is

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter4: Gross Income: Concepts And Inclusions

Section: Chapter Questions

Problem 12DQ

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Question

Samuel and Darci are partners. The partnership capital for Samuel is $60,000 and that of Darci is $85,000. Josh is admitted as a new partner by investing $55,200 cash. Josh is given a 22% interest in return for his investment. The amount of the bonus to the old partners is

Formula Formula ROI (%) = Net Income Principal Amount × 100

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