Ruby and Anita Are Partners

question 171

Multiple Choice

Ruby and Anita are partners.Ruby has a capital balance of $270,000 and Anita has a capital balance of $180,000.Denis contributes a building with a current market value of $170,000 to acquire an interest in the new partnership.Which of the following is TRUE of the journal entry to record this transaction? (Assume no bonus to any partner.)

• A) Building will be debited for $170,000, Ruby, Capital and Anita, Capital will be credited for $85,000 each.
• B) Building will be debited for $170,000 and Denis, Capital will be credited for $170,000.
• C) Ruby, Capital and Anita, Capital will be debited for $85,000 each and Denis, Capital will be credited for $170,000.
• D) Ruby, Capital and Anita, Capital will be credited for $85,000 each and Denis, Capital will be debited for $170,000.

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