In the JK Partnership,Jacob's Capital Is $140,000,and Katy's Is $40,000

Multiple Choice

In the JK partnership,Jacob's capital is $140,000,and Katy's is $40,000.They share income in a 3:2 ratio,respectively.They decide to admit Erin to the partnership.Each of the following questions is independent of the others.
-Refer to the information provided above.Jacob and Katy agree that some of the inventory is obsolete.The inventory account is decreased before Erin is admitted.Erin invests $38,000 for a one-fifth interest.What is the amount of inventory written down?

A) $10,000
B) $20,000
C) $28,000
D) $36,000