Steve owns 64% and Mark owns 36% of a partnership business.They purchase equipment with a suggested value of $9,600.The current market value of the equipment at the time of purchase was $9,100.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 balance sheet?
A)The Equipment account will be debited at $9,100 on the date of purchase.
B)The Equipment account will be debited at $8,940 on the date of purchase.
C)The Equipment account will be debited at $9,600 on the date of purchase.
D)The Equipment account will be debited at $9,440 on the date of purchase.

Question

Quizplus · Accepted Answer

A)Plant assets are recorded at their historic cost.

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