Letterman and Conan Are Partners Who Share Profits and Losses

question 3

Multiple Choice

Letterman and Conan are partners who share profits and losses 3:7. The capital accounts on January 1, 2017, are $120,000 and $160,000, respectively. Leno is to be admitted as a partner with a one-fourth interest in the capital and profits and losses by investing $80,000. Goodwill is not to be recorded. The capital balances after admission should be:

• A) Letterman, $117,000; Conan, $153,000; Leno, $90,000
• B) Letterman, $120,000; Conan, $160,000; Leno, $90,000
• C) Letterman, $123,000; Conan, $160,000; Leno, $80,000
• D) Letterman, $120,000; Conan, $167,000; Leno, $80,000

---

Definitions:

Benjamin Whorf

An American linguist known for his hypothesis that the structure of a language affects its speakers' worldview or cognition.

Morpheme

The smallest meaningful unit of language that cannot be further divided, which may be a word, prefix, or suffix.

Artificial Intelligence

A branch of computer science dealing with the simulation of intelligent behavior in computers.

Sternberg's Triarchic Theory

A theory of intelligence proposing that human intelligence comprises three aspects: analytical, creative, and practical intelligence.