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

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 question is independent of the others.
Refer to the information provided above. David invests $50,000 for a one-fifth interest. What amount of goodwill will be recorded?

A) $20,000
B) $4,000
C) $40,000
D) $15,000