Nathan Long Is Entering into a Partnership with Terri

question 17

Multiple Choice

Nathan Long is entering into a partnership with Terri.Nathan is investing $2,000 cash and equipment currently on Nathan's books at $6,000 and accumulated depreciation of $1,000.The equipment has a fair market value of $4,000.The entry to record Nathan's investment should include be to:

• A)debit Cash $2,000; debit Equipment $6,000; credit Accumulated Depreciation $1,000; credit Long,Capital $7,000.
• B)debit Cash $2,000; debit Equipment $6,000; credit Accumulated Depreciation $2,000; credit Long,Capital $6,000.
• C)debit Long,Capital $6,000; debit Accumulated Depreciation $2,000; credit Cash $2,000; credit Equipment $6,000.
• D)debit Cash $2,000; debit Equipment $4,000; credit Long,Capital $6,000.

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Definitions:

Highly Industrialized Country

A nation characterized by a significant level of industrialization, with a major portion of its economy based on manufacturing and technology.

Developing Countries

Nations with a lower living standard, underdeveloped industrial base, and low Human Development Index (HDI) relative to other countries.

Ecological Succession

The process by which the structure of a biological community evolves over time, involving species that colonize an ecosystem and sequentially replace each other.

Industrialization

The process of transforming economies from primarily agricultural to ones dominated by industry and machine manufacturing, marked by technological innovation and urban growth.