Questions 7 through 9 are based on the following:

A, B and C have capital balances of 112,000, 130,000 and v58,000, respectively, and share profit in the ratio 3:2:1. D invest cash in the partnership for a one-fourth interest.

7. Assume D receives a one-fourth interest in the assets of the partnership, which includes credit for 25,000 of goodwill that is recognized upon admission. How much cash D invest?

a. 100,000

b. 75,000

c. 125,000

d. 50,000

8. Assume D receives a one-fourth interest in the assets of the partnership and D is credited with 20,000 of the bonus from the old partners that is recognized upon D's admission. How much cash D invest?

a. 73,333

b. 100,000

c. 93,333

d. 80,000

9. Assume D receives a one-fourth interest in the assets of the partnership and B is credited with 15,000 of the bonus from D, how much cash D invest? d. c. b.

a. 115,000

b. 105,000

c. 160,000

d. 120,000