Question

Chapter 12 eBook 4 Show Me How Calculator Partner Bonus 1. EX 1203. EXCEL ALGO 2 EX 12 18 EXCEL ALGO Patel has a capital balance of 5310,000 after adjusting assets to fair market value Killingsworth contributes $490,000 to receive a 60% interest in a new partnership with Patel 3. EX 12.08 BLANKSHEETAL... 4. PE 12.03A BLANKSHEET Determine the amount and recipient of the partner bonus. Amount of bonus Recipient of bonus 5. EX 12.01.BLANKSHEETAL 6. PE 12.01A BLANKSHEET . 7. PE 12 BAA 3. PE 12 000 9. DX 12 10 BLANKSHEETAL 10. PR 12 03 LAKSEETA

Answer 1

1) Partner Bonus

Patel’s Capital = $310,000

KIllingsworth Contribute = $490,000

Interest = 60%

Total Capital after admission = 310,000 + 490,000= $800,000

Killingsworht capital credit = $800,000 $1600567443286_blob.png$ 60% = $480,000

Killingsworth was to pay $480,000 but he paid $490,000.

So Bonus to Patel= $490,000 – $480,000 = $10,000

Thus Bonus = $10,000

Reciepient of bonus = Patel

2) Partner Bonus

Todd’s Capital = $170,600

Zanetti Contribute = $45,500

Interest = 40%

Total Capital after admission = 170,600+ 45,500= $216,100

Zanetti’s capital credit = $216,100  $\times$ 40% = $86,440

Zanetti was to pay $86,440 but he paid $45,500.

So Bonus to Zanetti = 86,440 – 45,500 = $40,940

Thus Bonus = $40,940

Reciepient of bonus = Zanetti