Steve Owns 60% and Mark Owns 40% of a Partnership

question 76

Multiple Choice

Steve owns 60% and Mark owns 40% of a partnership business. For developing the business, they purchased equipment for $10,000. The current market value of the equipment at the time of purchase was $9,500. At the time of the balance sheet preparation, depreciation of $200 was incurred. Based on the information provided, which of the following is true of the partnership balance sheet?

• A)The Equipment account will be debited at $9,500 on the date of purchase.
• B)The Equipment account will be debited at $9,300 on the date of purchase.
• C)The Equipment account will be debited at $10,000 on the date of purchase.
• D)The Equipment account will be debited at $9,800 on the date of purchase.

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