Organ and Dana are partners. The partnership capital for Morgan is $50,000 and for Dana is $60,000. Townsend is admitted as a new partner by investing $40,000 cash. Townsend is given a 25% interest in return for her investment. The amount of the bonus to the old partners is

$2,500

Explanation:

The computation of the amount of bonus to the old partner is shown below:

But before that first we have to find out the contributed capital which is

= $50,000 + $60,000 + $40,000

= $150,000

Now the interest rate is 25%

So, the capital after considering the interest rate is

= $150,000 × 25%

= $37,500

And, the new partner invested amount is $40,000

So, the amount of the bonus is

= $40,000 - $375,00

= $2,500

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