Nathan Long Is Entering into a Partnership with Terri

question 36

Multiple Choice

Nathan Long is entering into a partnership with Terri. Nathan is investing $4,000 cash and equipment currently on Nathan's books at $16,000 and accumulated depreciation of $4,000. The equipment has a fair market value of $10,000. The entry to record Nathan's investment should be to:

• A) debit Cash $4,000; debit Equipment $16,000; credit Accumulated Depreciation $4,000; credit Long, Capital $16,000.
• B) debit Cash $4,000; debit Equipment $10,000; credit Accumulated Depreciation $4,000; credit Long, Capital $10,000.
• C) debit Long, Capital $12,000; debit Accumulated Depreciation $4,000; credit Cash $4,000; credit Equipment $12,000.
• D) debit Cash $4,000; debit Equipment $10,000; credit Long, Capital $14,000.

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Definitions:

Transnational Strategy

A business strategy that involves operating globally but with responsiveness to local needs and preferences.

Global Operations

The activities conducted by an organization to manage its business across various countries worldwide.

Local Markets

Regional or community-based marketplaces where goods and services are traded, often influenced by local demand and supply.

Geocentric View

An outlook in international business where a company sees the entire world as a potential market and strives to develop products or services that appeal globally.