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Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to
Dalworth and Minor have decided to form a partnership. Minor is going to contribute a depreciable asset to the partnership as her equity contribution to the partnership. The following information regarding the asset to be contributed by Minor is available:
Historical cost of the asset$276,000
Accumulated depreciation on the asset$140,000
Note payable secured by the asset and assumed by the partnership$118,000
Agreed-upon market value of the asset$245,000
Based on this information, Minor's beginning equity balance in the partnership will be:
- $276,000
- $158,000
- $136,000
- $127,000
- $18,000
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