12.

The following balance sheet information is for the partnership of Abele, Boule, and Cayman:

Cash	$ 210,000	Liabilities	$ 510,000
Other assets	1,500,000	Abele, Capital (40%)	300,000
		Boule, Capital (40%)	480,000
		Cayman, Capital (20%)	420,000
	$1,710,000		$1,710,000

Figures shown parenthetically reflect agreed profit and loss sharing percentages.

If the assets are fairly valued on the above balance sheet and the partnership wishes to admit Dann as a new 1/5 partner without recording goodwill or bonus, Dann should invest cash or other assets of

A)

$427,500.

B)

$240,000.

C)

$300,000.

D)

$342,000.

13.	The partnership agreement of Powell, Gaunt, and Holl allows Gaunt a bonus of 10% of income after the bonus, salaries of $30,000 per partner and interest of 6% on average capital balances of $120,000, $150,000, and $180,000 for Powell, Gaunt, and Holl, respectively. The amount of Gaunt's bonus, assuming income before bonus, salaries, and interest of $315,000, is
	A)	$18,000.
	B)	$22,000.
	C)	$19,800.
	D)	$31,500.