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.