Carl Alvarez Joined a Partnership and Contributed the Following Assets

question 74

Multiple Choice

Carl Alvarez joined a partnership and contributed the following assets: $$\begin{array} { | l | l | r | r | } \hline \text { Cash } & & & \$ 5,000 \\\hline & & & \\\hline \text { Equipment } & \text { Original cost: } & & \$ 42,000 \\\hline & \text { Accumulated amortization: } & & \$ 20,000 \\\hline & \text { Current market value: } & \$ 30,000 & \\\hline & & & \\\hline \text { Land } & \text { Original cost: } & & \$ 110,000 \\\hline & \text { Current market value: } & \$ 200,000 & \\\hline\end{array}$$ On the partnership books,the assets will be recorded at a total value of:

• A) $137,000.
• B) $157,000.
• C) $235,000.
• D) $147,000.

---

Definitions:

Fizzle & Sizzle

An informal term indicating the contrasting outcomes of events or products; "fizzle" for failing and "sizzle" for succeeding amazingly.

Implicit Cost

The opportunity cost associated with a firm's use of resources that it already owns, representing the income the firm foregoes by using these resources in its current capacity.

Total Revenue

The total amount of money received by a company from sales of its products or services, before any expenses are subtracted.

Linear

Pertaining to a relationship or equation that can be graphically represented in a straight line, indicating a constant rate of change.