Groh and Jackson Are Partners

Multiple Choice

Groh and Jackson are partners.Groh's capital balance in the partnership is $64,000 and Jackson's capital balance is $61,000.Groh and Jackson have agreed to share equally in income or loss.Groh and Jackson agree to accept Block with a 25% interest.Block will invest $35,000 in the partnership.The bonus that is granted to Block equals:

A) $5,000.
B) $2,500.
C) $6,667.
D) $3,333.
E) $0,because Block must actually grant a bonus to Groh and Jackson.