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

Recognize the influence of technological advancements on consumer preferences and market strategies.

Understand the significance of demographic shifts and their implications for business strategies and economic trends.

Understand the concept and significance of culture in society.

Identify how economic conditions and indicators affect consumer behavior and business operations.

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Definitions:

U.S. Tax Law

The body of laws and regulations governing the collection and administration of taxes in the United States.

Undistributed Earnings

Refers to the portion of a company's net profits that has not been paid out to shareholders as dividends but is retained for reinvestment in the business or to pay off debt.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on income or profits.