In the ABC Partnership (To Which Daniel Seeks Admittance),the Capital

question 61

Multiple Choice

In the ABC partnership (to which Daniel seeks admittance) ,the capital balances of Albert,Bert,and Connell,who share income in the ratio of 5:3:2 are:

-Based on the preceding information,what amount of goodwill will be recorded if Daniel invests $450,000 for a one-third interest?

• A)$0
• B)$10,000
• C)$50,000
• D)$100,000

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Definitions:

Sons of Liberty

A group of patriots formed in the North American British colonies to protest against British taxation and laws, known for their role in the American Revolution.

Tea Act

A 1773 British law that granted the East India Company the right to sell tea to the American colonies free of the taxes that colonial tea sellers had to pay, leading to the Boston Tea Party.

Great Britain's Right

The inherent or legal privileges, freedoms, or authority that Great Britain claims or exercises, often in a historical or legal context.

Stamp Act

A 1765 British tax imposed on the American colonies, requiring them to pay a tax on printed materials, which sparked widespread protest.