Andy and Ian Formed a Partnership on April 1, 2015

question 20

Multiple Choice

Andy and Ian formed a partnership on April 1, 2015. Andy contributes equipment, purchased at a price of $85,000 on April 1, 2014, to the business. The accumulated depreciation of the equipment is $15,000. The current market value of the equipment is $75,000. The value of the equipment recorded in the partnership journal is ________.

• A)$70,000
• B)$75,000
• C)$60,000
• D)$85,000

---

Definitions:

Reasonable Price

A price that is fair and acceptable to both buyers and sellers, given the quality and nature of the product or service.

Services and Products

The combination of tangible goods and intangible activities that fulfill a need or want of consumers.

CSR Levels

The varying degrees to which a business engages in corporate social responsibility initiatives, from basic compliance with laws to integrating social and environmental concerns into their business model.

Economic

Pertaining to the production, distribution, and consumption of goods and services, or the wealth and resources of a country or region.