Hannah Johnson contributed equipment, inventory, and $52,700 cash to a partnership. The equipment had a book value of $25,400 and a market value of $33,500. The inventory had a book value of $45,300 but only had a market value of $11,900 due to obsolescence. The partnership also assumed a $12,900 note payable owed by Hannah that was originally used to purchase the equipment. What amount should be recorded to Hannah's capital account?

Hannah Johnson contributed equipment, inventory, and $52,700 cash to a partnership. The equipment had a book value of $25,400 and a market value of $33,500. The inventory had a book value of $45,300 but only had a market value of $11,900 due to obsolescence. The partnership also assumed a $12,900 note payable owed by Hannah that was originally used to purchase the equipment. What amount should be recorded to Hannah's capital account?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter15: Partnership Accounting

Section: Chapter Questions

Problem 5MC: Chani contributes equipment to a partnership that she purchased 2 years ago for $10,000. The current...

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