Gary, Peter, and Chris and Have Capital Balances of $25,000

question 13

Multiple Choice

Gary, Peter, and Chris and have capital balances of $25,000, $40,000, and $31,000, respectively. As per the partnership agreement, Gary gets a profit share of 2/9; Peter gets 4/9; and Chris gets 3/9. The partnership agrees to pay $22,000 as the final settlement to Gary. How much bonus does Peter receive as a result of this transaction?

• A)$1,714
• B)$1,286
• C)$1,667
• D)$1,333

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Definitions:

Camber

The angle of a vehicle's wheels in relation to the ground, affecting stability and tire wear.

Toe

In automotive terms, the angle at which the wheels of a vehicle tilt inward or outward from a vertical position, affecting steering and tire wear.

Dampers

Components of a vehicle's suspension system designed to absorb and dampen shock impulses to provide a smoother ride.

Bounce Test

A quick diagnostic procedure used to check the suspension and shocks of a vehicle, where pressure is applied to the body and released to observe how the vehicle rebounds.