Dalworth and Minor Have Decided to Form a Partnership

question 96

Multiple Choice

Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to the partnership. The following information regarding the asset to be contributed by Minor is available: Historical cost of the asset $276,000
Accumulated depreciation on the asset $140,000 Note payable secured by the asset and assumed by the partnership $118,000 Agreed-upon market value of the asset $245,000
Based on this information, Minor's beginning equity balance in the partnership will be:

• A) $158,000
• B) $136,000
• C) $276,000
• D) $18,000
• E) $127,000

---

Definitions:

Financing

The act of supplying capital for company operations, acquiring assets, or investing.

Major Kitchen Appliances

Large household appliances such as refrigerators, stoves, and dishwashers that are essential for kitchen operations.

Retail Credit Company

A company specializing in the issuance and management of credit to consumers, often directly linked to specific retail stores or brands.

Work-in-Progress

Inventory that includes goods in the process of being manufactured but not yet completed.