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 question is independent of the others.
Refer to the information provided above. Allen and Daniel agree that some of the inventory is obsolete. The inventory account is decreased before David is admitted. David invests $40,000 for a one-fifth interest. What is the amount of inventory written down?
A) $4,000
B) $20,000
C) $15,000
D) $10,000
Correct Answer:
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Q15: A partnership is a(n):
I.accounting entity.
II.taxable entity.
A)I only
B)II
Q21: In the RST partnership, Ron's capital is
Q23: In the AD partnership, Allen's capital is
Q24: In the AD partnership, Allen's capital is
Q26: In the AD partnership, Allen's capital is
Q27: Note: This is a Kaplan CPA Review
Q28: When a partner retires from a partnership
Q28: In the AD partnership, Allen's capital is
Q30: In the RST partnership, Ron's capital is
Q39: When a new partner is admitted into
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