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Question
The Craig-Doran Partnership plans to form a new partnership with Alexis. The existing partnership owns inventory that was purchased for $85,000, has a current replacement cost of $54,500, and is priced to sell for $98,000. At what amount should the inventory be recorded in the accounts of the new partnership if Alexis is to be admitted?
a. $98,000
b. $54,500
c. $85,000
d. $79,167
Answer
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