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teve owns 55% and Mark owns 45% of a partnership business.

teve owns 55% and Mark owns 45% of a partnership business.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Steve owns 55% and Mark owns 45% of a partnership business. They purchase equipment with a suggested value of $10,200. The current market value of the equipment at the time of purchase was $9,700. At the time of the balance sheet preparation, depreciation of $180 was recorded. Based on the information provided, which of the following is TRUE of the partnership? - ○ The Equipment account will be debited at $9,700 on the date of purchase. - ○ The Equipment account will be debited at $10,200 on the date of purchase. - ○ The Equipment account will be debited at $10,020 on the date of purchase. - ○ The Equipment account will be debited at $9,520 on the date of purchase.
Transcribed Image Text:Steve owns 55% and Mark owns 45% of a partnership business. They purchase equipment with a suggested value of $10,200. The current market value of the equipment at the time of purchase was $9,700. At the time of the balance sheet preparation, depreciation of $180 was recorded. Based on the information provided, which of the following is TRUE of the partnership? - ○ The Equipment account will be debited at $9,700 on the date of purchase. - ○ The Equipment account will be debited at $10,200 on the date of purchase. - ○ The Equipment account will be debited at $10,020 on the date of purchase. - ○ The Equipment account will be debited at $9,520 on the date of purchase.
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