Ask Question
7 May, 17:13

As part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated depreciation of $72,075 has been recorded. If similar equipment would cost $164,400 to replace and the partners agree on a valuation of $47,900 for the contributed equipment, what amount should be debited to the equipment account

+2
Answers (1)
  1. 7 May, 19:20
    0
    Answer: $47,900

    Explanation:

    From the question, we are told that part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated depreciation of $72,075 has been recorded.

    We are further told that assuming similar equipment would cost $164,400 to replace and the partners agree on a valuation of $47,900 for the contributed equipment, we are told to calculate the amount that would be debited to the equipment account.

    It should be noted that in a partnership, when the partners contribute an asset, during the recording of the asset in the partnership book, it is recorded based on the agreed valuation price.

    In this case, the partners agree on a valuation of $47,900 for the contributed equipment. Therefore, the amount that should be debited to the equipment account will be $47,900.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “As part of the initial investment, Ray Blake contributes equipment that had originally cost $96,100 and on which accumulated depreciation ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers