B is corrent. In this case the new partner is investing $25,000 for a one-third interest in the new total capital of $90,000. This means that a bonus of $5,000 [(1/3 × $90,000) – $25,000] is being credited to the new partner for contribution of some intangible element in addition to his tangible contribution. The bonus to the new partner is charged to the old partners in their profit and loss ratio.| Cicci [$35,000 – 7/10 ($5,000)] | = | $31,500 | | Arias [$30,000 – 3/10 ($5,000)] | = | 28,500 | | Soto [$90,000/3] | = | 30,000 | | Total capital | | $90,000 |
A is incorrect. In this case the new partner is investing $25,000 for a one-third interest in the new total capital of $90,000. This means that a bonus of $5,000 [(1/3 × $90,000) – $25,000] is being credited to the new partner for contribution of some intangible element in addition to his tangible contribution. The bonus to the new partner is charged to the old partners in their profit and loss ratio.
| Cicci [$35,000 – 7/10 ($5,000)] | = | $31,500 | | Arias [$30,000 – 3/10 ($5,000)] | = | 28,500 | | Soto [$90,000/3] | = | 30,000 | | Total capital | | $90,000
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C is incorrect.In this case the new partner is investing $25,000 for a one-third interest in the new total capital of $90,000. This means that a bonus of $5,000 [(1/3 × $90,000) – $25,000] is being credited to the new partner for contribution of some intangible element in addition to his tangible contribution. The bonus to the new partner is charged to the old partners in their profit and loss ratio.
| Cicci [$35,000 – 7/10 ($5,000)] | = | $31,500 | | Arias [$30,000 – 3/10 ($5,000)] | = | 28,500 | | Soto [$90,000/3] | = | 30,000 | | Total capital | | $90,000
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D is incorrect.In this case the new partner is investing $25,000 for a one-third interest in the new total capital of $90,000. This means that a bonus of $5,000 [(1/3 × $90,000) – $25,000] is being credited to the new partner for contribution of some intangible element in addition to his tangible contribution. The bonus to the new partner is charged to the old partners in their profit and loss ratio.
| Cicci [$35,000 – 7/10 ($5,000)] | = | $31,500 | | Arias [$30,000 – 3/10 ($5,000)] | = | 28,500 | | Soto [$90,000/3] | = | 30,000 | | Total capital | | $90,000
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