Answer: Van Ness, $13,300
Step-by-step explanation:
From the question, we are told that Burns has a capital balance of $98,000 after adjusting assets to fair market value and that Van Ness contributed $56,000 to receive a 45% interest in a new partnership with Burns. The calculation goes thus :
Equity of Burns = $98,000
Van Ness contribution = $56,000
Total equity = $98,000 + $56,000
= $154,000
Van Ness equity interest = 45%
Van Ness equity after admission will now be:
= 45% × $154,000
= 0.45 × $154,000
= $69,300
The recipient of the partner bonus is Van Ness end the amount will be his equity after admission minus his contribution. This will be:
= $69,300 - $56,000
= $13,300