Question: Groh & Jackson are partners. Groh’s capital balance in the partnership is USD 64,000 & Jackson’s capital balance is 61,000. Groh & Jackson have agreed to share equally in income or loss. Groh & Jackson agree to accept Block with a 20 percent interest. Block will invest 35,000 in the partnership. The bonus that is granted to Groh & Jackson equals:
[A] 3750 each
[B] USD 1500 each
[C] 1875 each
[D] 1920 to Groh; 1830 to Jackson
[E] USD 0 because Groh & Jackson actually grant a bonus back to Block