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

question 27

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.David invests $40,000 for a one-fifth interest in the total capital of $220,000.The journal to record David's admission into the partnership will include:


Definitions:

Establish A Partnership

The process of creating a partnership, which involves two or more individuals agree to share the profits and losses of a business endeavor.

Fiduciary Duty

A legal obligation requiring one party to act in the best interest of another when entrusted with care or responsibility for their property or welfare.

Breached

The act of breaking or failing to observe a law, agreement, or code of conduct.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources and rights.

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