Hansen and Fleming are partners and share equally in income or loss. Hansen’s current capital balance in the partnership is

$125,000 and Fleming’s is $124,000. Hansen and Fleming agree to accept Black with a 20% interest. Black invests

$75,000 in the partnership. The bonus granted to Hansen and Fleming equals:

a. $13,000 each.

b. $5,100 each.

c. $4,000 each.

d. $5,285 to Hansen; $4,915 to Fleming.

e. $0; Hansen and Fleming grant a bonus to Black.

AppendixLO1