Harvey and Quick have decided to form a partnership.Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to the partnership.The following information regarding the asset to be contributed by Harvey is available: Based on this information,Harvey's beginning equity balance in the partnership will be:
A)$76,000
B)$36,000
C)$18,000
D)$27,000
E)$45,000

Question

Harvey and Quick have decided to form a partnership.Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to the partnership.The following information regarding the asset to be contributed by Harvey is available:  Based on this information,Harvey's beginning equity balance in the partnership will be:
A)$76,000 
B)$36,000 
C)$18,000 
D)$27,000 
E)$45,000

Quizplus · Accepted Answer

Harvey's beginning equity balance will be the fair market value of the asset contributed, which is $27,000.

Harvey and Quick Have Decided to Form a Partnership