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Question
Henry Jones contributed equipment, inventory, and $44,000 cash to a partnership. The equipment had a book value of $35,000 and market value of $28,000. The inventory had a book value of $25,000 but only had a market value of $12,000 due to obsolescence. The partnership also assumed a $15,000 note payable owed by Henry that was originally used to purchase the equipment.
What amount should be recorded to Henry’s capital account?
a. $104,000
b. $89,000
c. $69,000
d. $84,000
Answer
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