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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Definitions:

Expectancy Theory

A motivation theory suggesting that individuals are more likely to perform actions if they expect that their actions will lead to desirable outcomes.

Performance-outcome Expectancy

The belief or assumption about the likelihood that one's effort will lead to desired performance outcomes.

Task Goals

Objectives or aims that pertain to the completion of specific tasks, often setting the direction and purpose for individual or team effort.

Behavioural Self-management

The process of controlling one's own behavior through self-observation, self-evaluation, and self-reinforcement to achieve personal goals.