HW #4 - Sarah Lowery 7/9/2011 951010439 Chapter 12, Pt. 2...

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Sarah Lowery 7/9/2011 951010439 Chapter 12, Pt. 2 Homework PA 12-5 1) Dick, Capital 18,300 Jane, Capital 17,100 Spot, Capital 35,400 2) Total capital after contribution by new partner: $143,000 Total capital given to new partner: $35,750 Total bonus given to new partner: $10,750 Allocated bonus among past partners (fixed ratio): Dick: $10,750 x 58% = $6,235 Jane: $10,750 x 42% = $4,515 Cash 25,000 Dick, Capital 6,235 Jane, Capital 4,515 Spot, Capital 35,750 3) Total capital after contribution by new partner: $180,000 Total capital given to new partner: $54,000 Total bonus to old partners: $8,000 Allocated bonus among past partners (fixed ratio): Dick: $8,000 x 58% = $4,640 Jane: $8,000 x 42% = $3,360 Cash 62,000 Dick, Capital 4,640 Jane, Capital 3,360 Spot, Capital 54,000 PA 12-6 1) Kennie, Capital 64,000 Carrtman, Capital32,000 Kile, Capital 32,000 2) Total bonus to old partner: $16,000 Allocated bonus among past partners (fixed ratio): Carrtman: $16,000 x (42/(42+28))= $9,600 Kile: $16,000 x (28/(42+28))= $6,400 Kennie, Capital 64,000
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HW #4 - Sarah Lowery 7/9/2011 951010439 Chapter 12, Pt. 2...

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