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 20% interest.Block will invest $35,000 in the partnership.The bonus that is granted to Groh and Jackson equals:

A) $1,500 each.
B) $1,875 each.
C) $3,750 each.
D) $1,920 to Groh; $1,830 to Jackson.
E) $0,because Groh and Jackson actually grant a bonus to Block.