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:

Firms Operating

Businesses engaged in any activity that seeks profits by providing goods or services to customers.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good supplied by producers, under the assumption of ceteris paribus (all other factors being equal).

Output

The total amount of goods or services produced by a company, industry, or economy within a specified period.

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity supplied for a given period.