As Part of the Initial Investment, Ray Blake Contributes Equipment

question 104

Multiple Choice

As part of the initial investment, Ray Blake contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $29,000 for the contributed equipment, what amount should be debited to the equipment account?

• A) $29,000
• B) $150,000
• C) $125,000
• D) $100,000

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Definitions:

Directive Style

A leadership approach where instructions and orders are given directly to subordinates.

Path-Goal Theory

A leadership theory that suggests leaders should adjust their style, behaviors, and strategies to effectively motivate their followers and achieve task objectives.

Leadership Effectiveness

The degree to which a leader successfully influences and guides individuals or organizations towards achieving objectives.

Crisis

A critical or difficult situation that requires immediate attention and action to prevent or mitigate significant negative consequences.