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

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 questions 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