Question

Mathew, Patrick, and Robin have capital balances of $75,000, $120,000, and $93,000, respectively. As per the partnership agreement, Mathew gets a profit share of 2/9; Patrick gets 4/9; and Robin gets 3/9. Partnership agrees to pay $66,000 as final settlement to Mathew. How much bonus will Robin receive as a result of this transaction?A. $5,142B. $5,000C. $3,857D. $4,000

Answer 1

C. $3,857

Step-by-step explanation:

Calculation for How much bonus will Robin receive as a result of this transaction

First step is to calculate the bonus amount

Bonus amount=75,000-66,000

Bonus amount=9,000

Second Step is to calculate the Amount received by Robin

Amount received by Robin=9,000*3/(4+3)

Amount received by Robin=9,000*3/7

Amount received by Robin=$3,857

Therefore the amount of bonus that Robin

will receive as a result of this transaction will be $3,857