Rodriguez and Ying Start a Partnership Business on July 1

question 123

Multiple Choice

Rodriguez and Ying start a partnership business on July 1, 2014. Rodriguez brings in cash worth $4,000, furniture with a current market value of $50,000, and computer equipment. The computer equipment cost $45,000 in 2011 and has an accumulated depreciation of $25,000. The current market value of the computer equipment is $18,000. At what value should the computer equipment be recorded in the books of the partnership firm?

• A)$45,000
• B)$18,000
• C)$20,000
• D)$25,000

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Definitions:

Mortgage Rate

The interest rate charged by a lender for a loan used to purchase a property.

Average Cost

The total cost of production divided by the number of units produced, representing the cost per unit.

Shares

Units of ownership in a company or financial asset, giving shareholders a portion of the company's profits and voting rights.

PST

Depending on the context, this could stand for Pacific Standard Time, which is the time zone observed on the west coast of the United States, or Provincial Sales Tax, a tax imposed by some Canadian provinces.