Use the Following Information to Answer the Following Questions

question 11

Multiple Choice

Use the following information to answer the following questions. Izabelle and Marta are forming a partnership. Izabelle will invest a piece of equipment with a book value of $7,500 and a fair market value of $20,000. Marta will invest a building with a book value of $40,000 and a fair market value of $58,000.
What amount will be recorded to Izabelle's capital account?

• A) $20,000
• B) $7,500
• C) $27,500
• D) $12,500

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Definitions:

Infraspinatus

The infraspinatus is a muscle on the back of the shoulder blade that is involved in the rotation and stabilization of the shoulder joint.

Supraspinatus

A muscle located in the shoulder, part of the rotator cuff, that assists in abduction of the arm.

Subscapularis

A muscle in the shoulder that assists in rotating the arm and stabilizing the shoulder joint.

Teres Major

A muscle located in the upper arm that assists in the rotation and adduction of the arm.