Partners A and B will contribute cash and C will contribute an equipment acquired 2 years ago at the cost of 100,000. the equipment is being depreciated on a straight line method for 5 years without scrap value. The age of the equipment at the date of formation is one year and three months. At that date, the fair value of the equipment is 110,000. The amount to be credited to C capital is A. 25,000 B. 75,000 C. 100,000 D. 110,000
Partners A and B will contribute cash and C will contribute an equipment acquired 2 years ago at the cost of 100,000. the equipment is being depreciated on a straight line method for 5 years without scrap value. The age of the equipment at the date of formation is one year and three months. At that date, the fair value of the equipment is 110,000. The amount to be credited to C capital is A. 25,000 B. 75,000 C. 100,000 D. 110,000
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter18: Accounting For Long-term Assets
Section: Chapter Questions
Problem 6CE
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Partners A and B will contribute cash and C will contribute an equipment acquired 2 years ago at
the cost of 100,000. the equipment is being
scrap value. The age of the equipment at the date of formation is one year and three months. At that
date, the fair value of the equipment is 110,000. The amount to be credited to C capital is
A. 25,000
B. 75,000
C. 100,000
D. 110,000
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