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7 August, 16:31

As part of the initial investment, ray blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. if similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account

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  1. 7 August, 18:13
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    Given:

    Original cost of contributed equipment : 125,000

    Accumulated depreciation of contributed : 100,000

    Value of similar equipment : 150,000

    Agreed upon valuation of contributed equipment : 29,000

    The amount that should be debited to the equipment account is 29,000.

    It is the current value of the contributed equipment as agreed upon by the partners.
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