Keith and Jim Are Partners

question 68

Multiple Choice

Keith and Jim are partners. Keith has a capital balance of $50,000 and Jim has a capital balance of $40,000. Bill invested a building worth $30,000 to the partnership for an ownership interest of 20%. How much is the total bonus for the existing partners?

• A)$5,000
• B)$15,000
• C)$6,000
• D)$30,000

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Definitions:

Interest Charges

Costs incurred for borrowing money, calculated as a percentage of the principal amount loaned.

Account Payable

An obligation of a company to pay a short-term debt to its creditors or suppliers.

Deductions

Amounts subtracted from gross income or revenue to calculate net income or taxable income, including expenses, allowances, and discounts.

Employee Receivables

Amounts owed to a company by its employees, often due to overpayment or advancements.