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:

Object Permanence

The understanding that objects continue to exist even when they cannot be observed or heard, a critical concept in cognitive development of infants.

A-not-B Error

A cognitive error observed in young children, where they wrongly assume that an object at a hidden location remains there even after seeing it being moved to a new location.

Habituation

A psychological learning process wherein there is a decrease in response to a stimulus after being repeatedly exposed to it.

Sensorimotor Stage

The first of Jean Piaget's stages of cognitive development, where infants from birth to about 2 years old learn through interacting with their environment using their senses and motor actions.