Question
Fernando and Jose are partners with capital balances of P30, 000 and P70, 000, respectively. Fernando has a 30% interest in profits and losses. All
Fernando and Jose are partners with capital balances of P30, 000 and P70, 000, respectively. Fernando has a 30% interest in profits and losses. All assets of the partnership are at fair market value except equipment with a book value of P300, 000, and a fair market value of P320, 000. At this time, the partnership has decided to admit Rosa and Linda as new partners. Rosa contributes cash of 55, 000 for 20% interest in capital and 30% interest in profits and losses. Linda contributes cash of P10, 000 and equipment with a fair value of P50, 000 for a 25% interest in capital and 35% interest in profits and losses. Linda is also bringing special expertise and client contacts into the new partnership. Using the bonus method, what is the amount of bonus?
Select one: a. P24,750 b. P18,250 c. P7,500 d. P14,000
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