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Brown and Rubix Are Partners

Question 134

Multiple Choice

Brown and Rubix are partners.Brown's capital balance in the partnership is $73,000 and Rubix's capital balance is $62,000.Brown and Rubix have agreed to share equally in income or loss.Brown and Rubix agree to accept Cabela with a 20% interest.Cabela will invest $41,500 in the partnership.The bonus that is granted to Brown and Rubix equals:


A) $3,100 each.
B) $6,200 each.
C) $35,300 in total.
D) $41,500 in total.
E) $0,because Brown and Rubix actually grant a bonus to Cabela.

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