Canfield invests cash of $20,000 and inventory with a cost of $60,000 and a current value of $65,000 in the Canfield and Roose Partnership.In addition,Canfield invests land with a cost of $75,000,a current market value of $170,000,and a $70,000 mortgage on the property assumed by the partnership.Roose invests equipment with a cost of $100,000 and accumulated amortization of $40,000.Roose's equipment has a current market value of $100,000.Roose also invests inventory with a current market value of $30,000.
-What is the balance in the capital account of Canfield?

Question

Quizplus · Accepted Answer

To find the balance in Canfield's capital account, we need to add up the value of all the investments made by Canfield, and then subtract any liabilities assumed by the partnership.

Investments made by Canfield: 
- Cash: $20,000 
- Inventory: $65,000

- Land: $170,000 
- Less: Mortgage assumed by partnership: $70,000 
- Net value of land investment: $100,000

Total investments made by Canfield: $20,000 + $65,000 + $100,000 = $185,000

Therefore, the balance in Canfield's capital account is $185,000.

Canfield Invests Cash of $20,000 and Inventory with a Cost