Use the Following Information to Answer the Following Questions

question 171

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 Marta's capital account ?

• A) $18,000
• B) $20,000
• C) $40,000
• D) $58,000

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Definitions:

Supply Product

The total amount of goods or services available for purchase at any given price point.

Market Price

The current value at which a good or service can be bought or sold in a particular market.

Market

A venue or system where buyers and sellers interact to trade goods, services, or financial instruments, establishing prices and quantities through supply and demand.

Economically Successful

Refers to the state or condition where an entity, such as a person, company, or nation, achieves desired financial outcomes and sustainable growth over time.