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

question 51

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.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

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