bellows has a capital balance of 200000 after adjusting assets to fair market values.rodriguez contributes 360000 to receive a 60% interest in a new partnership with bellows.determine the amount and recipient of the partner bonus
To determine the amount and recipient of the partner bonus, we need to calculate the total capital of the partnership after Rodriguez's contribution and then subtract the fair market value of Bellows' assets.
After Rodriguez's contribution, the new total capital of the partnership is $200,000 + $360,000 = $560,000.
Since Rodriguez contributes 60% of the new partnership, his share of the total capital is 60% of $560,000 = $336,000.
Now, we need to compare Rodriguez's capital to the fair market value of Bellows' assets.
If the fair market value of Bellows' assets is less than $336,000, Rodriguez will receive a bonus. If the fair market value is greater than $336,000, then no bonus is received.
Let's assume the fair market value of Bellows' assets is $400,000.
Since $400,000 is greater than Rodriguez's share of the total capital ($336,000), he will receive a partner bonus of $400,000 - $336,000 = $64,000.