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? AllenDanielA)$136,000 $34,000 B)$160,000 $60,000 C)$170,000 $50,000 D)$140,000 $40,000
A. Option A
B. Option B
C. Option C
D. Option D
Answer: C
Business
You might also like to view...
For each of the following documents, describe its purpose, the functional area preparing it, and the key data included: sales order, bill of lading, credit memo
Business
A qualified person or organization that has the potential to buy your goods or services is a:
A. suspect. B. prospect. C. volunteer. D. lead. E. partner.
Business
Upon dissolution, a partner still has authority to complete existing contracts
a. True b. False Indicate whether the statement is true or false
Business
The closing entry for dividends involves a debit to ________ and a credit to______.
A. Dividends Payable? Dividends B. Retained Earnings? Dividends C. Dividends? Retained Earnings D. Dividends? Dividends Payable
Business