Steve owns 64% and Mark owns 36% of a partnership business.They purchase equipment with a suggested value of $9600.The current market value of the equipment at the time of purchase was $9100.At the time of the balance sheet preparation,depreciation of $160 was recorded.Based on the information provided,which of the following is TRUE of the partnership?
A) The Equipment account will be debited at $9100 on the date of purchase.
B) The Equipment account will be debited at $8940 on the date of purchase.
C) The Equipment account will be debited at $9600 on the date of purchase.
D) The Equipment account will be debited at $9440 on the date of purchase.

Question

Quizplus · Accepted Answer

Plant assets are recorded at their historic cost.

Steve Owns 64% and Mark Owns 36% of a Partnership