Letterman and Conan Are Partners Who Share Profits and Losses

question 3

Multiple Choice

Letterman and Conan are partners who share profits and losses 3:7. The capital accounts on January 1, 2017, are $120,000 and $160,000, respectively. Leno is to be admitted as a partner with a one-fourth interest in the capital and profits and losses by investing $80,000. Goodwill is not to be recorded. The capital balances after admission should be:

• A) Letterman, $117,000; Conan, $153,000; Leno, $90,000
• B) Letterman, $120,000; Conan, $160,000; Leno, $90,000
• C) Letterman, $123,000; Conan, $160,000; Leno, $80,000
• D) Letterman, $120,000; Conan, $167,000; Leno, $80,000

---

Definitions:

New Habitats

The creation or emergence of new living environments for organisms, often due to environmental changes, human activity, or natural processes.

Environment

The sum of all external conditions and influences affecting the life, development, and survival of organisms.

Political Structure

The organization of government and the distribution of power within a society.

Gender Imbalance

A demographic disparity where the number of individuals of one gender significantly exceeds the number of individuals of the other gender within a population.