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 Roose?

Question

Quizplus · Accepted Answer

Roose's capital account balance is calculated by adding the market value of the equipment ($100,000) and the market value of the inventory ($30,000), totaling $130,000.

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