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During the Liquidation of Gym, Hob & Ing LLP, Partner

Question 18

Multiple Choice

During the liquidation of Gym, Hob & Ing LLP, Partner Hob withdrew equipment with a cost to the partnership of $18,000, accumulated depreciation of $8,000, and a current fair value of $13,000. The partners shared net income and losses equally. The net debit to Hob's capital account (including any gain or loss on disposal of the equipment) , assuming the noncash asset may be distributed safely to Hob, is:


A) $10,000
B) $12,000
C) $13,000
D) $18,000
E) Some other amount

Correct Answer:

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