Brown Invests Cash of $20,000 and a Building with a Cost

question 197

Multiple Choice

Brown invests cash of $20,000 and a building with a cost of $350,000 and accumulated amortization to date of $195,000 in the Brown and Winter Partnership.The building has a current market value of $325,000.A mortgage payable of $105,000 is outstanding on the building and will be assumed by the partnership.Brown's capital account would be credited for:

• A) $165,000
• B) $175,000
• C) $240,000
• D) $70,000

Estimate the cost of merchandise purchases.

Assess estimated finished goods inventory balances.

Analyze budgeted sales and the factors affecting them.

Estimate the cost of goods sold and understand its implications.

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