As Part of the Initial Investment, a Partner Contributes Equipment

question 134

Multiple Choice

As part of the initial investment, a partner contributes equipment that had originally cost $125,000 and on which accumulated depreciation of $100,000 has been recorded. If similar equipment would cost $150,000 to replace and the partners agree on a valuation of $38,000 for the contributed equipment, what amount should be debited to the equipment account?

• A) $38,000
• B) $150,000
• C) $125,000
• D) $100,000

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Definitions:

Temporary Assistance for Needy Families

A federal assistance program in the United States designed to help needy families achieve self-sufficiency through financial aid and support services.

TANF

stands for Temporary Assistance for Needy Families, a program that provides financial help to low-income families in the United States.

Welfare Program

Governmental programs designed to support individuals or families in need, offering financial or other aid.

Income Inequality

The uneven distribution of income within a population, leading to a gap between the rich and the poor.