Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000. They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Harrison as a new partner with a 25% interest in the partnership. Harrison intends to invest P90,000 in cash. The bonus that is granted to Finch and Gerhardt equals: Select the correct response: P15,500 each. P3,750 each. P10,000 each. P5,000 each.

Finch and Gerhardt are partners. Finch's capital balance is P100,000 and Gerhardt's is P140,000. They agreed to share equally in profits and losses. Both partners agree to accept a third investor, Harrison as a new partner with a 25% interest in the partnership. Harrison intends to invest P90,000 in cash. The bonus that is granted to Finch and Gerhardt equals: Select the correct response: P15,500 each. P3,750 each. P10,000 each. P5,000 each.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 3EA: The partnership of Tasha and Bill shares profits and losses in a 50:50 ratio, and the partners have...

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