In the AD Partnership, Allen's Capital Is $140,000 and Daniel's

question 55

Multiple Choice

In the AD partnership, Allen's capital is $140,000 and Daniel's is $40,000 and they share income in a 3:1 ratio, respectively. They decide to admit David to the partnership. Each of the following question is independent of the others.
Refer to the information provided above. What amount will David have to invest to give him one-fifth percent interest in the capital of the partnership if no goodwill or bonus is recorded?

• A) $60,000
• B) $36,000
• C) $50,000
• D) $45,000

---

Definitions:

Unemployment

The situation when individuals who are capable of working and are actively seeking work but are unable to find employment.

Short Run

A period during which at least one factor of production is considered fixed, typically used to describe a timeframe in which firms cannot alter plant capacity.

Money Supply Growth

An increase in the total amount of money in circulation or in the economy, often indicated by measures such as M1, M2, and M3.

Inflation Rate

The surge rate of the general price level in goods and services, leading to a decline in the ability to afford purchases.