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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