Rodriguez and Ying start a partnership business on 1 July 2017.Rodriguez brings in cash worth $3600,furniture with a current market value of $46,000 and computer equipment.The computer equipment cost $43,000 in 2014 and has an accumulated depreciation of $25,000.The current market value of the computer equipment is $15,000.At what value should the computer equipment be recorded in the books of the partnership firm?

Question

Quizplus · Accepted Answer

The computer equipment should be recorded at its current market value, which is $15,000. This is because the partnership needs to reflect the true value of its assets in its books, and the current market value is what someone would pay for the equipment if they were to purchase it today. The original cost and accumulated depreciation are not relevant for this purpose.

Rodriguez and Ying Start a Partnership Business on 1 July