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.

---

Definitions:

Self-Fulfilling Prophecy

A belief or expectation that influences behaviors in a way that causes the belief to become a reality.

Attribution Theory

A theory focused on how people interpret events and how this relates to their thinking and behavior, specifically how they attribute causes to events and other people's actions.

External Causes

Factors outside an individual that influence events or behaviors, such as environmental conditions or actions from other people.

Internal Causes

Factors or reasons originating within an individual or entity that lead to a specific outcome or behavior.