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

question 43

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 questions is independent of the others.
-Refer to the information provided above.Allen and Daniel agree that some of the inventory is obsolete.The inventory account is decreased before David is admitted.David invests $40,000 for a one-fifth interest.What are the capital balances of Allen and Daniel after David is admitted into the partnership?

• A) Option A
• B) Option B
• C) Option C
• D) Option D

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Definitions:

Random Variables

Variables whose values depend on outcomes of a stochastic (random) phenomenon.

Nature

The intrinsic physical and material world all around us, not made or caused by humankind.

Normal Random Variable

A variable that follows a normal distribution, characterized by its mean and standard deviation.

Z-score

A numerical measurement that describes a value's relationship to the mean of a group of values, measured in terms of standard deviations from the mean.