Steve owns 60% and Mark owns 40% of a partnership business. For developing the business, they purchased equipment for $10,000. The current market value of the equipment at the time of purchase was $9,500. At the time of the balance sheet preparation, depreciation of $200 was incurred. Based on the information provided, which of the following is true of the partnership balance sheet?
A)The Equipment account will be debited at $9,500 on the date of purchase.
B)The Equipment account will be debited at $9,300 on the date of purchase.
C)The Equipment account will be debited at $10,000 on the date of purchase.
D)The Equipment account will be debited at $9,800 on the date of purchase.

Question

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The Answer of Steve owns 60% and Mark owns 40% of a partnership business. For developing the business, they purchased equipment for $10,000. The current market value of the equipment at the time of purchase was $9,500. At the time of the balance sheet preparation, depreciation of $200 was incurred. Based on the information provided, which of the following is true of the partnership balance sheet?
A)The Equipment account will be debited at $9,500 on the date of purchase.
B)The Equipment account will be debited at $9,300 on the date of purchase.
C)The Equipment account will be debited at $10,000 on the date of purchase.
D)The Equipment account will be debited at $9,800 on the date of purchase.

Steve Owns 60% and Mark Owns 40% of a Partnership