Hewlett and Martin are partners. Hewlett's capital balance in the partnership is $60,000, and Martin's capital balance $57000. Hewlett and Martin have agreed to share equally in Income or loss. Hewlett and Martin agree to accept Block with a 25% interest. Black will invest $31,000 in the partnership. The bonus that is granted to Black equals: Multiple Choice $6.167 $6,000 $3,000 $0, because Black must actually grant a bonus to Hewlett and Martin $3.083

Bonus shares are extra shares that are given to current shareholders at no additional cost based on how many shares they currently own. These are the company's accumulated earnings that are converted into free shares rather than being distributed as dividends.

By increasing the issued share capital of the firm through the issuance of bonus shares, the company appears to be larger than it actually is, attracting investors. Additionally, as more shares are outstanding, the price of the stock falls, making it more accessible to individual investors.

Let plug in the formula

Total Partnership Equity = $60,000 + $57000 + $31,000

Total Partnership Equity= $1,48,000

Second step is to calculate the Equity for Block

Equity for Block = $1,48,000* 0.25 =

Equity for Block =$37,000

Now let calculate what Bonus to Block equals using this email formula

Bonus to Block = Block's Capital - Cash Investment

Let plug in the formula

Bonus to Block = $37,000 - $31,000

Bonus to Block= $6,000

Therefore the bonus that is granted to Black equals: $6,000

To learn more about bonus refer :

https://brainly.com/question/24084669

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