Bernstein invests office equipment with a fair market value of $62,000, delivery equipment with a fair market value of $75,000, and cash of $30,000. He owes $27,000, represented by a note on the delivery equipment. The amount of Bernsteins' capital would be

Question

Quizplus · Accepted Answer

To calculate Bernsteins' capital, we need to subtract his liabilities from his assets. His assets are:

Office equipment: $62,000
Delivery equipment: $75,000
Cash: $30,000

Total assets: $167,000

His liabilities are:

Note payable: $27,000

Therefore, his capital would be:

$167,000 - $27,000 = $140,000

So, the correct answer is C, $140,000.

Bernstein Invests Office Equipment with a Fair Market Value of $62,000