Robert Ballard,a sole proprietor,entered into partnership with another individual.Ballard's investment in the partnership included equipment that cost $64,000 when it was purchased.The equipment has a book value of $26,000 and a net agreed-on value of $32,000.In the financial records of the partnership,this equipment and its accumulated depreciation should be recorded at

Question

Quizplus · Accepted Answer

Only the net agreed-on value of the equipment should be recorded in the partnership's records. Since the net agreed-on value is $32,000, this is the amount that should be recorded. The accumulated depreciation is not recorded in the partnership's records because it represents the portion of the equipment's cost that has already been expensed in prior periods. Therefore, the answer is C: $32,000 and $0.

Robert Ballard,a Sole Proprietor,entered into Partnership with Another Individual