A partnership that reports using ASPE has two current partners, Ting and Zoe, who share income and losses of the partnership equally. On January 1 of the current year, the net assets of the partnership are $250,000. A new partner, Samantha, is admitted with a 25% ownership share after contributing $150,000 in cash. Which of the following describes how the bonus is allocated when admitting Samantha to the partnership, assuming the bonus method is used? 

A. Ting, Zoe, and Samantha are each allocated a bonus of $16,667. 

B. Ting and Zoe are each allocated a bonus of $25,000.

 C. Ting and Zoe are each allocated a bonus of $43,750. 

D. Ting and Zoe are each allocated a loss of $17,188.

Answer rating: 100% (QA)

To determine how the bonus is allocated when admitting Samantha to the partnership using the bonus m... View the full answer