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

question 1

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 directly purchases a one-fifth interest by paying Allen $34,000 and Daniel $10,000. The land account is increased before David is admitted. 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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Conversion Formula

A mathematical equation used to change units from one system to another or to transform data into a different format.

Hours

A unit of time equal to 60 minutes or 3,600 seconds.

Minutes

A unit of time equal to one-sixtieth of an hour or 60 seconds, used in the measurement of time.

Conversion Formulas

Mathematical equations used to convert measurements from one unit to another, such as from metric to imperial units or vice versa.