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Pachacha [2.7K]
3 years ago
10

In the ABC partnership (to which Daniel seeks admittance), the capital balances of Albert, Bert, and Connell, who share income i

n the ratio of 5:3:2 are:
Albert 500000
Bert 300000
Connell 200000

Based on the preceding information, if no goodwill or bonus is recorded, how much should Daniel invest for a 20 percent interest?
A. $400,000
B. $200,000
C. $300,000
D. $250,000
Business
1 answer:
Anna [14]3 years ago
7 0

Answer:

D. $ 250,000

Explanation:

The total capital of Albert, Bert and Conell is:

$500000 + $300000 + $200000 = $1000000

given that Daniel will have 20% share in partnership.

So total capital of the partnership after admission of Daniel will be calculated as follows:

($1000000×100)/80 = $ 1250000

Daniel will invest:

$1250000 – $1000000 = $250,000

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