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Question
Immediately prior to the admission of Abbott, the Smith-Jones Partnership determines that equipment that cost $20,000, with accumulated depreciation of $5,000, has a current market value of $12,000. Assuming an asset revaluation account is used, the journal entry to revalue the equipment will include
a. a debit to Asset Revaluation of $12,000
b. a debit to Asset Revaluation of $3,000
c. a credit to Equipment of $3,000
d. a credit to Accumulated Depreciation of $3,000
Answer
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