After accounting for fair market value, Malcolm's capital balance is $57,200. Celeste invests $44,800 in exchange for a 25% stake in Malcolm's new company. The partner bonus is $19,300.
<h3><u>What is the capital, exactly?</u></h3>
A factory and its equipment, intellectual property like patents, or the financial assets of a person or firm are all included in the broad definition of capital along with other goods that bring value or benefit to their owners.
The term "capital" can refer to money in and of itself, although it is more usually used to describe money that is being used for investments or productive purposes. In general, cash is crucial to running a business on a daily basis and funding future growth.
<u>Calculation:</u>
Equity of Malcolm = $57,200
Celeste contribution = $44,800
Total equity after celeste contribution = $57,200 + $44,800
= $1,02,000
Celeste equity interest = 25% of $1,02,000
= $25,500
Celeste's contribution minus celeste's equity stake equals the partner bonus.
= $44,800 - $25,500
= $19,300 bonus paid to partner
Learn more about capital with the help of the given link:
brainly.com/question/28548373
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