Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $54,500, and Martin's capital balance $51,500. Hewlett and Martin have agreed to share equally in income or loss. The existing partners agree to accept Black with a 20% interest. Black will invest $36,900 in the partnership. The bonus that is granted to Hewlett and Martin equals: a. $4,160 each.

b. $0, because Hewlett and Martin actually grant a bonus to Black.

c. $1,897 each.

d. 1,897 to Hewlett; $1,845 to Martin. $3,690 each.