Question

kerry and sherry own and operate a partnership. Jerry's capital balance is $50,000 and Sherry's is $55,00. Jerry and sherry decide to admit a new partner to their business- Allison. By the terms of their partnership agreement jerry and sherry income loss equally

Allison intends to contribute $40,00 cash to receive a 25% interest in partnership

a. Revalue the partnership assets

b. Determine the total equity of the partnership after the new partner is admitted

c determine the new partner share of the total equity

d determine the bonus resulting from Allison's equity cobtribution

c make journal to record Allison's admission to partnership

whats the difference between the bonus and Incone loss. I'm confused if I'm calculating the bonus first or total equity. What do I do?? I think it might be the bonus formula