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Question
The Calvin-Dogwood Partnership plans to form a new partnership with Alexis. The existing partnership owns inventory that was purchased for $90,000, has a current replacement cost of $85,900, and is priced to sell for $125,000. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?
a. $129,100
b. $85,900
c. $90,000
d. $125,000
Answer
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