Steve Owns 64% and Mark Owns 36% of a Partnership

question 128

Multiple Choice

Steve owns 64% and Mark owns 36% of a partnership business.They purchase equipment with a suggested value of $9600.The current market value of the equipment at the time of purchase was $9100.At the time of the balance sheet preparation,depreciation of $160 was recorded.Based on the information provided,which of the following is TRUE of the partnership?

• A) The Equipment account will be debited at $9100 on the date of purchase.
• B) The Equipment account will be debited at $8940 on the date of purchase.
• C) The Equipment account will be debited at $9600 on the date of purchase.
• D) The Equipment account will be debited at $9440 on the date of purchase.

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Definitions:

Pareto Efficient

An allocation of resources from which it is impossible to reallocate to make any one individual better off without making at least one individual worse off.

Trade

The exchange of goods, services, or both between two or more parties, either within the same country or internationally.

Textbook

A book containing comprehensive coverage of a subject, often used for academic study and instruction.

Marginal Utility

The supplementary satisfaction or value derived from the consumption of one more unit of a good or service.