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J, H, and N are partners with present capital balances of $40,000, $50,000 and $20,000 respectively. The partners share profits and losses according to the following percentages: 50% for A, 20% for B, and 30% for C. D is to join the partnership upon contributing $55,OOO to the partnership in exchange for a 35% interest in capital and a 20% interest in profits and losses.
An appraisal of the existing partnerships' assets reveals the following:
Accounts Receivable 20,000 overvalued;Inventory 10,000 overvalued; Land 10,000 undervalued; Building 15,000 undervalued.
Problem 1: What is the bonus of N in the new partnership assuming bonus method?
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