Question
Harvey and Quick have decided to form a partnership. Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to
Harvey and Quick have decided to form a partnership. Harvey is going to contribute a depreciable asset to the partnership as his equity contribution to the partnership. The following information regarding the asset to be contributed by Harvey is available: Historical cost of the asset $87,000 Accumulated depreciation on the asset $45,500 Note payable secured by the asset* $30,000 Agreed-upon market value of the asset $50,500 *will be assumed by the partnership Based on this information, Harvey's beginning equity balance in the partnership will be:
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