Partners A and B have existing capital balances of $50,000 and $70,000 and share profits and losses in a ratio of 60%/40%. Incoming partner C invests $58,000 for a 30% interest in profits and losses. Any difference between what is invested by partner C will be treated as a bonus to or from the existing partners.

How will the bonus be handled?

Answer rating: 100% (QA)

Partners A and B Exis tig balance f Existi... View the full answer