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

question 6

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-Refer to the information provided above.Allen and Daniel agree that some of the inventory is obsolete.The inventory account is decreased before David is admitted.David invests $40,000 for a one-fifth interest.What are the capital balances of Allen and Daniel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

Combinations

The act of combining or joining two or more elements together to form a whole.

English Auction

A bidding process where participants bid openly against one another, and the item is sold to the highest bidder.

Estimates Values

An approximation of the worth of goods, services, or financial instruments calculated through analysis or assessment techniques.

High-value

Describes goods, services, or properties that possess a significant worth or quality compared to others of a similar nature.