Danny and Vicky Are Forming a Partnership

question 59

Multiple Choice

Danny and Vicky are forming a partnership. Danny will invest a truck with a book value of $10,000 and a fair market value of $14,000. Vicky will invest a building with a book value of $30,000 and a fair market value of $42,000 with a mortgage of $15,000. What amount should be recorded in Danny's capital account?

• A) $30,000
• B) $27,000
• C) $42,000
• D) $14,000

---

Definitions:

Transaction Marketing

A traditional marketing strategy that focuses on single, short-term sales transactions rather than building long-term relationships with customers.

Relationship Marketing

A strategy aimed at building long-term relationships with customers rather than focusing solely on individual transactions, emphasizing customer loyalty and engagement.

Quality Marketing

Strategies and efforts focused on creating and promoting high-quality products or services to meet customer expectations.

Sales Investment Factor

The ratio or consideration of the cost invested in the sales process to the revenue generated, used to evaluate the effectiveness of sales strategies.