Question
Hanna contributes $55,000 cash, land that she bought for $195,000, and a building that cost her $140,000 and has been amortized $70,000, to the newly
Hanna contributes
$55,000
cash, land that she bought for
$195,000,
and a building that cost her
$140,000
and has been amortized
$70,000,
to the newly formed partnership of H & B Company. The current market value of the building is
$200,000
and has an outstanding mortgage of
$100,000.
The current market value of the land is
$390,000.
Barbara contributes
$50,500
cash, equipment with a current market value of
$80,000
with an outstanding note payable of
$15,000,
and an automobile with a current market value of
$30,000.
Barbara originally paid
$60,000
for the equipment, which has been amortized
$20,000.
The partners have agreed to share profits and losses equally.
The entry to record the investment by Hanna includes a credit to her capital account for _______.
A.$545,000
B.$485,000
C.$390,000
D.$500,000
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