In the abc partnership (to which daniel seeks admittance), the capital balances of albert, bert, and connell, who share income in the ratio of 5: 3: 2 are:
albert 5
bert 3
connell 2
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

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

all of them make sense but, i would have to say ask someone who has been there/or lives there, and/or read recent newspapers from that city.

hope this !