Required information

SB The trial balance of WM Partnership is as ...

The trial balance of WM Partnership is as follows:

	Debit		Credit
Cash	$	25,000
Accounts Receivable (net)		30,000
Inventory		50,000
Equipment (net)		95,000
Accounts Payable				$	50,000
Wilfred, Capital					100,000
Mike, Capital					50,000
Total	$	200,000		$	200,000

Wilfred and Mike decide to incorporate their partnership. The partnership's books will be closed, and new books will be used for W & M Corporation. The following additional information is available:

The estimated fair values of the assets follow:

Accounts Receivable	$	26,000
Inventory		46,000
Equipment		84,000

All assets and liabilities are transferred to the corporation.

The common stock is $10 par. Wilfred and Mike receive a total of 10,000 shares.

The partners share profits and losses in the ratio 7:3.

TB MC Qu. 16-18 Based on the preceding information...

Based on the preceding information, the journal entry on the partnership's books to record the Investment in W&M Corporation Stock will be debited for:

Multiple Choice

$150,000

$181,000

$131,000

Correct

$200,000

How do i get the answer of 131,000