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Question
Hannah Johnson contributed equipment, inventory, and $53,000 cash to a partnership. The equipment had a book value of $25,000 and a market value of $28,000. The inventory had a book value of $50,000 but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note payable owed by Hannah that was originally used to purchase the equipment.
What amount should be recorded to Hannah’s capital account?
a. $96,000
b. $84,000
c. $108,000
d. $116,000
Answer
This answer is hidden. It contains 1 characters.
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