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

question 24

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-Refer to the information provided above.Allen and Daniel agree that some of the inventory is obsolete.The inventory account is decreased before David is admitted.David invests $40,000 for a one-fifth interest.What is the amount of inventory written down?

• A)$4,000
• B)$20,000
• C)$15,000
• D)$10,000

---

Definitions:

Preoperational Thought

A stage in cognitive development, as described by Piaget, where children ages 2 to 7 engage in symbolic play and struggle with logic and taking the perspective of others.

Twin Studies

Research designs in psychology and genetics that compare the similarities and differences between monozygotic and dizygotic twins to understand the influence of genetics and environment.

Adoption Studies

Research that examines the similarities and differences in traits between adopted children and their biological and adoptive families to understand the effects of genetics versus environment.

Intelligence

The ability to learn from experience, solve problems, and use knowledge to adapt to new situations.