The public accounting firm of Grant Thornton disclosed global revenues of $1.84 billion for a recent year. The revenues were attributable to 2,270 active partners.
a. What was the average revenue per partner? Round to the nearest $1,000.
b. Assuming that the total partners’ capital is $300,000,000 and that it approximates the fair market value of the firm’s net assets, what would be considered a minimum contribution for admitting a new partner to the firm, assuming no bonus is paid to the new partner? Round to the nearest $1,000.
c. Why might the amount to be contributed by a new partner for admission to the firm exceed the amount determined in (b)?