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

question 26

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.Assume that David invests $50,000 for a one-fourth interest.Goodwill is to be recorded.The journal to record David's admission into the partnership will include:

• A)a credit to cash for $50,000.
• B)a debit to goodwill for $7,500.
• C)a credit to David,Capital for $60,000.
• D)a credit to David,Capital for $50,000.

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Definitions:

Isometric

A method of drawing or projection where the object is shown in three dimensions in a single view, with the axes typically inclined at equal angles to provide depth.

Hidden Lines

Dashed lines used in technical drawings to indicate edges or surfaces that are not directly visible from the current viewpoint.

Visible

Refers to lines or features that are clearly visible on a drawing or object, without obstruction.

Legibility

The quality of being clear enough to read, referring to text or handwriting.