Admitting New Partner With Bonus

Cody Jenkins and Lacey Tanner formed a partnership to provide landscaping services. Jenkins and Tanner shared profits and losses equally. After all the tangible assets have been adjusted to current market prices, the capital accounts of Cody Jenkins and Lacey Tanner have balances of $46,000 and $60,000, respectively. Valeria Solano has expertise with using the computer to prepare landscape designs, cost estimates, and renderings. Jenkins and Tanner deem these skills useful; thus, Solano is admitted to the partnership at a 30% interest for a purchase price of $29,000.

a. Determine the recipient and amount of the partner bonus. $fill in the blank a7d78a035068fbe_1

b. Provide the journal entry to admit Solano into the partnership. If an amount box does not require an entry, leave it blank.

		fill in the blank 0feba702c05f04d_2	fill in the blank 0feba702c05f04d_3
		fill in the blank 0feba702c05f04d_5	fill in the blank 0feba702c05f04d_6
		fill in the blank 0feba702c05f04d_8	fill in the blank 0feba702c05f04d_9
		fill in the blank 0feba702c05f04d_11	fill in the blank 0feba702c05f04d_12

c. Why would a bonus be paid in this situation?

Apparently, Jenkins and Tanner value offered by Solano.