Robert Johnson Contributed Equipment, Inventory, and $42,000 Cash to the Partnership

question 58

Multiple Choice

Robert Johnson contributed equipment, inventory, and $42,000 cash to the partnership. The equipment had a book value of $25,000 and market value of $28,000. The inventory has a book value of $50,000, but only had a market value of $15,000 due to obsolescence. The partnership also assumed a $12,000 note payable owed by Robert that was originally used to purchase the equipment. What amount should Robert's capital account be recorded?

• A) $85,000
• B) $73,000
• C) $117,000
• D) $105,000

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Definitions:

Intermittent Reinforcement

A conditioning schedule where a response is only sometimes reinforced, leading to more resistant behavior to extinction.

Occurrence

Occurrence denotes an event or a situation that happens or takes place, often used to describe instances of varying significance.

Behavior

The actions or reactions of an individual or system in response to external or internal stimuli.

Reinforcement

In psychology and behaviorism, it’s a consequence applied that strengthens an organism's future behavior whenever that behavior is preceded by a specific antecedent stimulus.