Sally Smythe Enters into a Partnership by Contributing the Following

question 8

Multiple Choice

Sally Smythe enters into a partnership by contributing the following: Cash $15,000;Accounts Receivable $4,500;Machinery which cost $3,000 and has a fair market value of $2,125;and accounts payable of $1,200.What amount will be recorded in her capital account?

• A)$21,625
• B)$20,425
• C)$22,500
• D)$21,300

---

Definitions:

Rule of Reason Analysis

A legal doctrine used in antitrust law to determine if a business practice is anticompetitive, considering the practice's purpose, effects, and justifications.

2004 Amendments

Refers to specific changes or additions made to legislation or regulations in the year 2004.

Corporate Offenders

Companies or their representatives who violate laws or regulations, thereby committing corporate crime.

Violate Sections

To breach or fail to comply with specific parts or provisions of a legal document or statute.